Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 08, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001650696 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | Laird Superfood, Inc. | |
Amendment Flag | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Securities Act File Number | 001-39537 | |
Entity Tax Identification Number | 81-1589788 | |
Entity Small Business | true | |
Entity Incorporation, State or Country Code | DE | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Address, Address Line One | 5303 Spine Road | |
Entity Address, Address Line Two | Suite 204 | |
Entity Address, City or Town | Boulder | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80301 | |
City Area Code | 541 | |
Local Phone Number | 588-3600 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | LSF | |
Security Exchange Name | NYSEAMER | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,343,643 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash, cash equivalents, and restricted cash | $ 10,576,295 | $ 17,809,802 |
Accounts receivable, net | 1,814,461 | 1,494,469 |
Inventory, net | 5,857,285 | 5,696,565 |
Prepaid expenses and other current assets, net | 1,651,717 | 2,530,075 |
Total current assets | 19,899,758 | 27,530,911 |
Noncurrent assets | ||
Property and equipment, net | 155,160 | 150,289 |
Fixed assets held-for-sale | 0 | 800,000 |
Intangible assets, net | 1,188,674 | 1,292,118 |
Related party license agreements | 132,100 | 132,100 |
Right-of-use assets | 417,172 | 133,922 |
Total noncurrent assets | 1,893,106 | 2,508,429 |
Total assets | 21,792,864 | 30,039,340 |
Current liabilities | ||
Accounts payable | 2,282,983 | 1,080,267 |
Accrued expenses | 3,748,178 | 6,295,640 |
Related party liabilities | 34,857 | 16,500 |
Lease liabilities, current portion | 126,580 | 59,845 |
Total current liabilities | 6,192,598 | 7,452,252 |
Lease liabilities | 305,836 | 76,076 |
Total liabilities | 6,498,434 | 7,528,328 |
Stockholders' equity | ||
Common stock, $0.001 par value, 100,000,000 shares authorized as of June 30, 2023 and December 31, 2022; 9,699,866 and 9,334,162 issued and outstanding at June 30, 2023, respectively; and 9,576,117 and 9,210,414 issued and outstanding at December 31, 2022, respectively | 9,335 | 9,210 |
Additional paid-in capital | 119,071,283 | 118,636,834 |
Accumulated deficit | (103,786,188) | (96,135,032) |
Total stockholders' equity | 15,294,430 | 22,511,012 |
Total liabilities and stockholders' equity | $ 21,792,864 | $ 30,039,340 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Common stock par or stated value per share | $ 0.001 | $ 0.001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 9,699,866 | 9,576,117 |
Common stock shares outstanding | 9,334,162 | 9,210,414 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | ||||
Sales, net | $ 7,724,091 | $ 8,674,006 | $ 15,837,029 | $ 18,014,019 |
Cost of goods sold | (5,848,023) | (7,096,068) | (12,087,085) | (14,486,271) |
Gross profit | 1,876,068 | 1,577,938 | 3,749,944 | 3,527,748 |
General and administrative | ||||
Impairment of goodwill and other long-lived assets | 0 | 100,426 | 0 | 8,126,426 |
Other expense | 2,616,177 | 2,535,099 | 5,614,621 | 6,337,743 |
Total general and administrative expenses | 2,616,177 | 2,635,525 | 5,614,621 | 14,464,169 |
Research and product development | ||||
Research and development expenses | 82,324 | 116,467 | 166,190 | 220,300 |
Sales and marketing | ||||
Advertising | 1,155,789 | 1,567,465 | 2,316,997 | 3,359,202 |
Related party marketing agreements | 125,198 | 22,750 | 264,525 | 33,250 |
Other expense | 1,552,185 | 2,162,787 | 3,345,698 | 4,332,190 |
Total sales and marketing expenses | 2,833,172 | 3,753,002 | 5,927,220 | 7,724,642 |
Total operating expenses | 5,531,673 | 6,504,994 | 11,708,031 | 22,409,111 |
Operating loss | (3,655,605) | (4,927,056) | (7,958,087) | (18,881,363) |
Other income | ||||
Other income (expense) | 149,109 | 22,536 | 320,103 | (156,785) |
Loss before income taxes | (3,506,496) | (4,904,520) | (7,637,984) | (19,038,148) |
Income tax expense | (750) | 0 | (13,172) | (5,774) |
Net loss | $ (3,507,246) | $ (4,904,520) | $ (7,651,156) | $ (19,043,922) |
Earnings Per Share [Abstract] | ||||
Basic | $ (0.38) | $ (0.54) | $ (0.83) | $ (2.09) |
Diluted | $ (0.38) | $ (0.54) | $ (0.83) | $ (2.09) |
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, basic | 9,284,585 | 9,132,632 | 9,249,738 | 9,114,527 |
Weighted-average shares of common stock outstanding used in computing net loss per share of common stock, diluted | 9,284,585 | 9,132,632 | 9,249,738 | 9,114,527 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (3,507,246) | $ (4,904,520) | $ (7,651,156) | $ (19,043,922) |
Other comprehensive loss, net of tax | ||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 61,016 |
Total other comprehensive income (loss) | 0 | 0 | 0 | 61,016 |
Comprehensive loss | $ (3,507,246) | $ (4,904,520) | $ (7,651,156) | $ (18,982,906) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Stockholders' Equity, Balance Begining at Dec. 31, 2021 | $ 62,053,820 | $ 9,095 | $ 117,903,455 | $ (61,016) | $ (55,797,714) |
Stockholders' Equity, Balance Begining, Shares at Dec. 31, 2021 | 9,094,539 | ||||
Stock-based compensation | 10,796 | 10,796 | |||
Stock option exercises | 14,248 | $ 1 | 14,247 | ||
Stock option exercises, shares | 1,750 | ||||
Restricted stock units issued, net of taxes | $ 5 | (5) | |||
Restricted stock units issued, net of taxes, shares | 5,164 | ||||
Amounts reclassified from accumulated other comprehensive loss | 61,016 | 61,016 | |||
Net loss | (14,139,402) | (14,139,402) | |||
Stockholders' Equity, Balance Ending at Mar. 31, 2022 | 48,000,478 | $ 9,101 | 117,928,493 | 0 | (69,937,116) |
Stockholders' Equity, Balance Ending, Shares at Mar. 31, 2022 | 9,101,453 | ||||
Stockholders' Equity, Balance Begining at Dec. 31, 2021 | 62,053,820 | $ 9,095 | 117,903,455 | (61,016) | (55,797,714) |
Stockholders' Equity, Balance Begining, Shares at Dec. 31, 2021 | 9,094,539 | ||||
Amounts reclassified from accumulated other comprehensive loss | 61,016 | ||||
Net loss | (19,043,922) | ||||
Stockholders' Equity, Balance Ending at Jun. 30, 2022 | 42,993,558 | $ 9,170 | 117,826,024 | 0 | (74,841,636) |
Stockholders' Equity, Balance Ending, Shares at Jun. 30, 2022 | 9,169,958 | ||||
Stockholders' Equity, Balance Begining at Mar. 31, 2022 | 48,000,478 | $ 9,101 | 117,928,493 | 0 | (69,937,116) |
Stockholders' Equity, Balance Begining, Shares at Mar. 31, 2022 | 9,101,453 | ||||
Stock-based compensation | (209,242) | (209,242) | |||
Stock option exercises | 50,000 | $ 44 | 49,956 | ||
Stock option exercises, shares | 43,553 | ||||
Restricted stock units issued, net of taxes | $ 14 | (14) | |||
Restricted stock units issued, net of taxes, shares | 13,897 | ||||
Employee stock purchase plan shares issued | 11,055 | ||||
Stock issued during period, value, employee stock purchase plan | 28,287 | $ 11 | 28,276 | ||
Recovery Of Short Swing Profit | 28,555 | 28,555 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||||
Net loss | (4,904,520) | (4,904,520) | |||
Stockholders' Equity, Balance Ending at Jun. 30, 2022 | 42,993,558 | $ 9,170 | 117,826,024 | 0 | (74,841,636) |
Stockholders' Equity, Balance Ending, Shares at Jun. 30, 2022 | 9,169,958 | ||||
Stockholders' Equity, Balance Begining at Dec. 31, 2022 | 22,511,012 | $ 9,210 | 118,636,834 | 0 | (96,135,032) |
Stockholders' Equity, Balance Begining, Shares at Dec. 31, 2022 | 9,210,414 | ||||
Stock-based compensation | 147,635 | 147,635 | |||
Restricted stock units issued, net of taxes | (4,410) | $ 10 | (4,420) | ||
Restricted stock units issued, net of taxes, shares | 9,086 | ||||
Net loss | (4,143,910) | (4,143,910) | |||
Stockholders' Equity, Balance Ending at Mar. 31, 2023 | 18,510,327 | $ 9,220 | 118,780,049 | 0 | (100,278,942) |
Stockholders' Equity, Balance Ending, Shares at Mar. 31, 2023 | 9,219,500 | ||||
Stockholders' Equity, Balance Begining at Dec. 31, 2022 | 22,511,012 | $ 9,210 | 118,636,834 | 0 | (96,135,032) |
Stockholders' Equity, Balance Begining, Shares at Dec. 31, 2022 | 9,210,414 | ||||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||||
Net loss | (7,651,156) | ||||
Stockholders' Equity, Balance Ending at Jun. 30, 2023 | 15,294,430 | $ 9,335 | 119,071,283 | 0 | (103,786,188) |
Stockholders' Equity, Balance Ending, Shares at Jun. 30, 2023 | 9,334,162 | ||||
Stockholders' Equity, Balance Begining at Mar. 31, 2023 | 18,510,327 | $ 9,220 | 118,780,049 | 0 | (100,278,942) |
Stockholders' Equity, Balance Begining, Shares at Mar. 31, 2023 | 9,219,500 | ||||
Stock-based compensation | 306,076 | 306,076 | |||
Restricted stock units issued, net of taxes | (14,727) | $ 115 | (14,842) | ||
Restricted stock units issued, net of taxes, shares | 114,662 | ||||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||||
Net loss | (3,507,246) | (3,507,246) | |||
Stockholders' Equity, Balance Ending at Jun. 30, 2023 | $ 15,294,430 | $ 9,335 | $ 119,071,283 | $ 0 | $ (103,786,188) |
Stockholders' Equity, Balance Ending, Shares at Jun. 30, 2023 | 9,334,162 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (7,651,156) | $ (19,043,922) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Depreciation and amortization | 163,532 | 574,361 |
Provision for inventory obsolescence | 627,742 | 140,075 |
Impairment of goodwill and other long-lived assets | 0 | 8,126,426 |
Other operating activities, net | 620,226 | 567,740 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (371,355) | 24,659 |
Inventory | (788,462) | 1,337,457 |
Prepaid expenses and other current assets | 1,328,709 | 1,258,290 |
Operating lease liability | (62,923) | (370,214) |
Accounts payable | 1,202,716 | (475,332) |
Accrued expenses | (2,529,105) | 897,620 |
Net cash from operating activities | (7,460,076) | (7,536,658) |
Cash flows from investing activities | ||
Proceeds from sale of investment securities available-for-sale | 0 | 8,513,783 |
Other investing activities, net | 245,706 | 396,667 |
Net cash from investing activities | 245,706 | 8,910,450 |
Cash flows from financing activities | ||
Cash flows from financing activities | (19,137) | 121,090 |
Net change in cash and cash equivalents | (7,233,507) | 1,494,882 |
Cash, cash equivalents, and restricted cash, beginning of period | 17,809,802 | 23,049,234 |
Cash, cash equivalents, and restricted cash, end of period | 10,576,295 | 24,544,116 |
Supplemental disclosures of cash flow information | ||
Right-of-use assets obtained in exchange for operating lease liabilities | 344,382 | 5,285,330 |
Supplemental disclosures of non-cash information | ||
Receivable from sale of assets held-for-sale included in other current assets at the end of the period | 450,351 | 0 |
Imputed interest related to operating leases | 15,036 | 96,976 |
Amounts reclassified from accumulated other comprehensive loss | 0 | (61,016) |
Amounts reclassified from property, plant, and equipment to fixed assets held-for-sale | 0 | (947,394) |
Amounts reclassified from property, plant, and equipment to intangible assets | 0 | (153,691) |
Purchases of equipment included in deposits at the beginning of the period | $ 0 | $ 372,507 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | 1. Nature of Operations and Summary of Significant Accounting Policies The accompanying unaudited consolidated condensed financial statements include the accounts of Laird Superfood, Inc., a Delaware corporation, and its wholly owned subsidiary, Picky Bars, LLC, (collectively, the “Company”, “Laird Superfood”, “we”, or "our"). Nature of Operations Laird Superfood is an emerging consumer products platform focused on manufacturing and marketing highly differentiated, plant-based and functional foods. The core pillars of the Laird Superfood platform are Superfood Creamer coffee creamers, Hydrate hydration products and beverage enhancing supplements, harvest snacks and other food items, and functional roasted and instant coffees, teas and hot chocolate. The Company was founded in 2015. Basis of Accounting The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and rules and regulations of the Securities and Exchange Commission (“SEC”). Operating results include the three and six months ended June 30, 2023 and 2022 . Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. Principles of Consolidation All significant intercompany accounts and transactions have been eliminated in our accompanying unaudited consolidated condensed financial statements. Unaudited Interim Consolidated Condensed Financial Information In the opinion of the Company, the accompanying unaudited consolidated condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in stockholders’ equity and cash flows. The accompanying unaudited consolidated condensed financial statements and related financial information should be read in conjunction with the Company's fiscal year 2022 Form 10-K filed with the SEC on March 16, 2023. The unaudited consolidated condensed balance sheet as of December 31, 2022 was derived from the audited annual consolidated financial statements. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results expected for the fiscal year ending December 31, 2023 . Use of Estimates The preparation of the unaudited consolidated condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Although management believes its estimates and assumptions are reasonable when made, they are based upon information available at the time they are made. Management evaluates the estimates and assumptions on an ongoing basis and, if necessary, makes adjustments. Due to the risks and uncertainties involved in the Company’s business and evolving market conditions and given the subjective element of the estimates and assumptions made, actual results may differ from estimated results. The most significant estimates and judgments include those related to allowances for doubtful accounts and returns, inventory obsolescence, goodwill, intangible assets, valuation allowance for deferred taxes, reserves on prepaid expenses, the discount rates used in determining right of use assets and related lease liabilities, valuation of inventory, trade and sales promotion liabilities, and fair value of stock-based compensation. Segment reporting The Company currently has one operating segment. In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company considers operating segments to be components of the Company’s business for which separate financial information is available and is evaluated regularly by management in deciding how to allocate resources and in assessing performance. Management reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating and reportable segment. Substantially all product sales for the periods provided were derived from domestic sales. See Note 12 for additional information regarding sales by platform within the Company’s single segment. Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash are highly liquid instruments with an original maturity of three months or less when purchased. For the purposes of the statements of cash flows, the Company includes cash on hand, cash in clearing accounts, cash on deposit with financial institutions, investments with an original maturity of three months or less, and restricted cash in determining the total balance. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet. June 30, December 31, Cash and cash equivalents $ 10,476,770 $ 17,710,277 Restricted cash 99,525 99,525 Total cash, cash equivalents, and restricted cash $ 10,576,295 $ 17,809,802 Amounts in restricted cash represent those that are required to be set aside by contractual agreement. On December 3, 2020, the Company entere d into an agreement with Danone Manifesto Ventures, PBC, which provided the Company $ 298,103 in funds for the purpose of supporting three COVID-19 relief projects. During the three and six months ended June 30, 2023, we contributed $ 0 to these projects. During the three and six months ended June 30, 2022 we contributed $ 10,068 and $ 14,839 , respectively , to these projects. The restriction will be released upon the completion of the projects. Cash equivalents in the amount of $ 6,325,000 as of June 30, 2023 were pledged to secure our revolving line of credit and company credit card limits. See Note 3 for additional information. Cash, cash equivalents, and restricted cash balances that exceeded the Federal Deposit Insurance Corporation (“FDIC”) insurable limits as of June 30, 2023 and December 31, 2022 totaled $ 462,616 and $ 2,747,721 , respectively. The Company has never experienced any losses related to these balances. The Company’s cash, cash equivalents, and restricted cash are with what the Company believes to be a high-quality issuer and considers the risks associated with these funds in excess of FDIC insurable limits to be low. Accounts Receivable, net Accounts receivable, net consists principally of trade receivables, which are recorded at the invoiced amount, net of allowances for credit loss. Trade receivables do not bear interest. Receivables are considered past due or delinquent according to contract terms. Management closely monitors outstanding balances and writes off accounts receivable as they are determined uncollectible. The primary indicators of the credit quality of our receivables are aging and payment history and are assessed on a quarterly basis. Our credit loss exposure is concentrated in our accounts receivable portfolio. Our allowance for credit losses is calculated using a loss-rate method based on historical experience and reasonable forecasts. Based on these factors, management determined an allowance for credit loss of $ 128,799 and $ 77,436 as of June 30, 2023 and December 31, 2022 , respectively. Inventory Inventory is stated at the lower of cost or net realizable value, or the value of consideration that can be received upon sale of said product, and approximate costs determined on the first-in first-out basis and consists primarily of raw materials and packaging and finished goods and include direct labor and allocable overhead. The following table presents the components of inventory, net of reserves, as of: June 30, December 31, Raw materials and packaging $ 2,674,183 $ 3,764,804 Finished goods 3,183,102 1,931,761 Total inventory, net $ 5,857,285 $ 5,696,565 The Company periodically reviews the value of items in inventory and provides write-offs of inventory based on current market assessment, which are charged to cost of goods sold. For the three and six months ended June 30, 2023, the Company recorded $ 262,718 and $ 627,742 , respectively, of inventory obsolescence and disposal costs. For the three and six months ended June 30, 2022, the Company recorded $ 135,645 and $ 1 40,075 , respectively, of inventory obsolescence and disposal costs. As of June 30, 2023 inventory reserv es totaled $ 1,387,894 . This is comprised of estimated reserves based on inventory turnover, quantities on hand, and expiration dates of $ 493,331 , as well as raw materials and finished goods specifically identified for disposal related to a product quality issue of $ 552,909 and discontinued inventories of $ 341,744 . A s of December 31, 2022 , inventory reserves totaled $ 1,545,033 . This was comprised of estimated reserves based on inventory turnover, quantities on hand, and expiration dates of $ 746,966 , reserves specifically identified for disposal related to a product quality issue of $ 559,042 and discontinued inventories following exit activities of $ 239,025 . As of June 30, 2023 and December 31, 2022, the Company had a total of $ 262,251 and $ 897,108 , respectively, of prepayments for future raw materials inventory which are included in prepaid expenses and other current assets, net on the unaudited consolidated condensed balance sheets. Property and Equipment, net Property and equipment are valued at cost, net of accumulated depreciation. Expenditures for maintenance and repairs that do not extend the useful life or increase the value of the assets are charged to expense in the period incurred. Additions and betterments are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for depreciation purposes for furniture and factory equipment range from 3 to 7 years. The useful life for leasehold improvements is the lesser of the lease term or the useful life. Construction in progress is not depreciated until such a time that the assets are completed and placed into service. Fixed Assets Held-for-Sale Long-lived assets identified by the Company for sale, which have met all criteria to be classified as held for sale, are disclosed separately on the balance sheet. Fixed assets held for sale are measured at the lower of the assets carrying amount or fair value less costs to sell, and depreciation is no longer recorded. See Note 4 for more information. Leases We categorize leases at their inception as either operating, finance, or short-term leases. Lease agreements effective during the three and six months ended June 30, 2023 and 2022 cover, or covered, office space, warehouse and distribution space, vehicles, and equipment. All of our long-term leases are operating leases. Operating leases are included in right-of-use assets, current lease liabilities, and long-term lease liabilities in our unaudited consolidated condensed balance sheets. Leased assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We use a secured incremental borrowing rate as the discount rate for present value of lease payments when the rate implicit in the contract is not readily determinable. For operating leases with variable payments dependent upon an index or rate that commenced subsequent to the adoption of ASC 842, Leases , we apply the active index or rate as of the lease commencement date. Variable lease payments not based on an index or rate are not included in the operating lease liability as they cannot be reasonably estimated and are recognized in the period in which the obligation for those payments is incurred. Leases that have a term of twelve months or less upon commencement date are considered short-term in nature. Accordingly, short-term leases are not included on the unaudited consolidated condensed balance sheets and are expensed on a straight-line basis over the lease term, which commences on the date we have the right to control the property. We are the lessor in a sublease agreement. This lease is an operating lease and is recognized straight line over the lease term with a related sublease rental asset accounting for abatements and initial direct costs. Revenue Recognition The Company recognizes revenue in accordance with the five-step model as prescribed by ASC 606, Revenue from Contracts with Customers , in which the Company evaluates the transfer of promised goods or services and recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to be entitled to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the Company satisfies a performance obligation. The Company has elected, as a practical expedient, to account for the shipping and handling as fulfillment costs, rather than as a separate performance obligation. Methodologies for determining these provisions are dependent on customer pricing and promotional practices. The Company records reductions to revenue and a refund liability for estimated product returns and pricing adjustments in the same period that the related revenue is recorded. These estimates are based on industry-based historical data, historical sales returns, if any, analysis of credit memo data, and other factors known at the time. See Note 12 for additional information regarding revenue recognition. Cost of Goods Sold Cost of goods sold includes material, packaging, co-packing fees, distribution freight, labor and overhead costs incurred in the storage and distribution of products sold in the period. Material costs include the cost of products purchased. In 2023, labor and overhead costs consisted of indirect product costs and freight, and in 2022 also included wages and benefits for manufacturing, planning, and logistics personnel, depreciation, and facility costs. Shipping and Handling Costs of shipping and handling related to sales revenue are included in cost of goods sold. Shipping and handling costs totaled $ 1,294,999 and $ 2,869,314 , respectively, for the three and six months ended June 30, 2023. Shipping and handling costs totaled $ 1,602,342 and $ 3,141,555 for the three and six months ended June 30, 2022. Income generated from shipping costs billed through to customers was included in Sales, net in the unaudited consolidated condensed statements of operations. Shipping income totaled $ 259,843 and $ 563,069 , respectively, for the three and six months ended June 30, 2023. Shipping income totaled $ 291,410 and $ 539,602 , respectively, for the three and six months ended June 30, 2022 . Research and Product Development Amounts spent on research and development activities are expensed as incurred as Research and product development expense on the unaudited consolidated condensed statements of operations. Research and product development expense was $ 82,324 and $ 166,190 , respectively, for the three and six months ended June 30, 2023. Research and product development expense was $ 116,467 and $ 220,300 , respectively, for the three and six months ended June 30, 2022 . Advertising Advertising costs are expensed when incurred. Advertising expenses for the three and six months ended June 30, 2023 were $ 1,155,789 and $ 2,316,997 , respectively. Advertising expenses for the three and six months ended June 30, 2022 were $ 1,567,465 and $ 3,359,202 , respectively. Marketing Marketing costs are expensed when incurred. Marketing expenses for the three and six months ended June 30, 2023 were $ 892,776 and $ 1,785,564 , respectively. Marketing expenses for the three and six months ended June 30, 2022 were $ 1,096,025 and $ 2,158,670 , respectively. Income Taxes Income taxes provide for the tax effects of transactions reported in the unaudited consolidated condensed financial statements and consist of income taxes currently due and deferred tax assets and liabilities. The Company may also be subject to interest and penalties from taxing authorities on underpayment of income taxes. In such an event, interest and penalties are included in income tax expense. Deferred tax assets and liabilities are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate primarily to depreciable assets (use of different depreciation methods and lives for financial statement and income tax purposes), stock-based compensation, right of use assets, and net operating losses. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Due to the historical net loss position of the Company, the Company recorded a deferred tax valuation allowance of $ 25,689,497 and $ 23,928,265 as of June 30, 2023 and December 31, 2022 , respectively. Stock Incentive Plan The compensation cost relating to share-based payment transactions is recognized in the unaudited consolidated condensed financial statements. The cost is measured based on the grant date fair value of the equity or liability instruments issued. Compensation cost for all employee stock awards is calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Compensation cost for all consultant stock awards is calculated and recognized over the consultant’s service period based on the grant date fair value of the equity or liability instruments issued. Upon exercise of stock option awards or vesting of restricted stock units ("RSUs") and market-based stock units ("MSUs"), recipients are issued shares of common stock. Pre-vesting forfeitures result in the reversal of all compensation cost as of the date of termination; post-vesting cancellation does not. Earnings per Share Basic earnings per share is computed on the basis of the weighted average number of shares of common stock that were outstanding during the period. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if all dilutive potential common stock had been issued and is calculated under the treasury stock method. Due to the Company’s net loss, all outstanding stock options, RSUs, and MSUs are anti-dilutive and excluded. License Agreement – Indefinite Lived Intangible Asset On August 3, 2015, the Company entered into a license agreement with the Company’s co-founder Laird Hamilton (the “LH License”). The LH License stated Laird Hamilton’s contribution to the Company was in the form of intellectual property, granting the Company the right to use Laird Hamilton’s name and likeness. This contribution, which was reported on the unaudited consolidated condensed balance sheets as of June 30, 2023 and December 31, 2022 , was valued at $ 132,000 and satisfied with the issuance of 660,000 shares of common stock. The Company has determined that the intangible asset associated with the LH License has an indefinite life, as there is no foreseeable limit on the period of time over which it is expected to contribute to the cash flows of the Company. On May 2, 2018, the Company entered into a license agreement with Gabrielle Reece, who is married to Mr. Hamilton (the “GR License”). Pursuant to the GR License, Ms. Reece granted the Company rights to her name, signature, voice, picture, image, likeness and biographical information commencing on July 1, 2015. This contribution, which is reported on the unaudited consolidated condensed balance sheets as of June 30, 2023 and December 31, 2022 , was valued at $ 100 based on the consideration exchanged. The Company has determined that the intangible asset associated with the GR License has an indefinite life, as there is no foreseeable limit on the period of time over which it is expected to contribute to the cash flows of the Company. On November 19, 2018, the Company executed a License and Preservation Agreement with Mr. Hamilton and Ms. Reece which superseded the predecessor license agreements with both individuals. The agreement added specific terms related to non-competition and allowable usage of the property under the license. No additional consideration was exchanged in connection with the agreement and the life of the agreement was set at 100 years. On May 26, 2020, the Company executed a License and Preservation Agreement with Mr. Hamilton and Ms. Reece (the “2020 License”), which superseded the predecessor license and preservation agreement with both individuals. Among other modifications, the agreement (i) modified certain approval rights of Mr. Hamilton and Ms. Reece for use of their respective images, signatures, voices, and names (other than those owned by the Company), rights of publicity and common law and statutory rights to the foregoing in the Company’s products, (ii) modified certain assignment, change of control and indemnification provisions, and (iii) granted the Company the right to extend the term of the agreement for additional ten-year terms upon the expiration of the initial one-hundred year term. No additional consideration was exchanged in connection with the agreement. As indefinite-lived intangibles, the Company assesses qualitative factors each reporting period to determine whether events and circumstances exist that indicate that the fair values of the licensing agreements were less than the carrying amounts. Upon considering these factors, the Company determined it was more likely than not that the fair value of the 2020 License was not less than the carrying amount; therefore, the Company recognized no impairment for the three and six months ended June 30, 2023 and 2022 . Definite Lived Intangible Assets, net Definite lived intangible assets are valued at cost, net of accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for amortization purposes range between 3 and 10 years. Amortization expense is allocated to general and administrative expense. For the three and six months ended June 30, 2023, amortization expenses were $ 51,722 and $ 103,444 , respectively. For the three and six months ended June 30, 2022, amortization expenses were $ 103,741 and $ 245,223 , respectively. The Company assesses qualitative factors each reporting period to determine whether events and circumstances exist that indicate that the fair values of the definite liv ed intangible assets were less than the carrying amounts. There were no impairment charges in the three and six months ended June 30, 2023 . In the last month of the first quarter of 2022, management determined the sustained decline in stock price, coupled with changes in market conditions, was a triggering event. Upon considering these factors, the Company determined it was more likely than not that the fair value was less than the carrying amounts of long-lived intangible assets; therefore, the Company recognized impairment charges of $ 0 and $ 1,540,000 for the three and six months ended June 30, 2022 , respectively. See Note 5 for more information. Goodwill Goodwill represents the excess of purchase price over the assigned fair values of the assets acquired and liabilities assumed in conjunction with a business combination. Goodwill is reviewed for impairment annually as of December 31, or whenever events occur or circumstances change that indicate goodwill may be impaired. In testing goodwill for impairment, the Company has the option to perform a qualitative assessment to determine whether the existence of events or circumstances indicate that it is more-likely-than-not (more than 50 %) that the fair value of goodwill is less than its carrying amount. When performing a qualitative assessment, the Company evaluates factors such as industry and market conditions, cost factors, overall financial performance, and other relevant entity specific events and changes. If the qualitative assessment indicates that it is more-likely-than-not that the fair value of goodwill is less than its carrying amount, or if the Company chooses not to perform the qualitative assessment, then a quantitative assessment is performed to determine the reporting unit’s fair value. If the carrying value exceeds its fair value, then an impairment loss is recognized for the amount of the excess of the carrying amount over the fair value, not to exceed the total amount of goodwill. In the last month of the first quarter, management had determined the sustained decline in stock price, coupled with a change in market conditions, was determined to be a triggering event. The Company performed a qualitative and quantitative analysis on the Company's goodwill for impairment concluding that the fair value of goodwill as calculated using a discounted cash flow model exceeds the carrying value, indicating that goodwill was impaired. The Company recorded goodwill impairment charges of $ 0 and $ 6,486,000 , respectively, during the three and six months ended June 30, 2022 . There was no goodwill as of June 30, 2023 or December 31, 2022. Employee Benefit Plan The Company sponsors a defined contribution 401(k) plan (the “401(k) plan”) for all employees 18 years or older. The 401(k) plan was initiated on July 1, 2018. Employee contributions may be made on a before-tax basis, limited by Internal Revenue Service regulations. For the three and six months ended June 30, 2023 and 2022 , the Company did no t match employee contributions. JOBS Act Accounting Election The Company qualifies as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. An emerging growth company can elect to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. Currently, the Company has elected to file as an emerging growth company defined under the JOBS Act, and as such, these unaudited consolidated condensed financial statements may not be comparable to the financial statements of companies that comply with the new or revised accounting pronouncements as of public company effective dates. Exit and Disposal Costs The Company follows the guidance in ASC 420, Exit or Disposal Cost Obligations , to record exit and disposal related costs. The Company recorded $ 8.7 million of exit and disposal costs in the fourth quarter of 2022 and insignificant residual costs in the six months ended June 30, 2023, associated with the closure of the Sisters, Oregon manufacturing sites and subsequent transition to a co-manufacturing model for all production and fulfillment. ASC 420 requires the recognition of costs associated with exit or disposal activities when they are incurred, generally the cease-use date. Exit and disposal activities are summarized below: • We entered into a lease termination agreement on December 12, 2022. All production activities taking place in the related properties ceased in December 2022. Pursuant to this agreement, our lease was fully terminated as of January 31, 2023, and we owed a total of $ 1.6 million in early lease termination costs of which $ 0.5 million was remitted in December 2022 and $ 1.1 million was satisfied in January 2023. We recognized lease termination costs, including the elimination of right of use assets net of lease liabilities, and early lease termination penalties, of $ 3.6 million which are included in General and Administrative Expenses for the year ended December 31, 2022. • We signed an asset purchase agreement with our new co-manufacturer for the sale of the majority of our production equipment for a purchase price of $ 0.8 million and an agreement to sell certain leasehold improvements for $ 0.1 million. Certain equipment, furniture, and leasehold improvements were abandoned upon exit of the lease. The net book value of this property exceeds the recoverability of the assets. As such, we recorded impairment charges of property, plant, and equipment and internal-use production software of $ 3.1 million and $ 0.1 million, respectively, which are included in General and Administrative Expenses for the year ended December 31, 2022. Consideration was received in the amount of $ 0.3 million in the first half of 2023 and consideration receivable of $ 0.5 million is included in Prepaid and other current assets on the unaudited consolidated condensed balance sheets as of June 30, 2023. • We incurred one-time termination benefits consisting of severances primarily for operations, production, and fulfillment personnel, of $ 0.6 million, which are included in General and Administrative Expenses for the year ended December 31, 2022. These were paid by January 2023. In the first quarter of 2023, we recognized a net reversal of expense of $ 0.1 million related to severances and forfeitures of stock-based compensation, which are included in General and Administrative Expenses. • We moved the majority of our raw materials inventory to our co-manufacturer and the majority of our finished goods inventory to our third-party logistics partners. Because we no longer have storage space in our warehouses, we determined that it was not cost-effective to pay for freight and storage fees to move and house certain inventories at our third-party partners' facilities. As a result, we disposed of, or reserved for disposal, certain inventories remaining at the Sisters, Oregon facilities which were not shipped to our third-party partners' facilities, in the amount of $ 1.1 million, which are included in Costs of Goods Sold for the year ended December 31, 2022. All such inventory remaining on-hand as of December 31, 2022 was disposed of in January 2023. • We incurred other costs for moving inventory, IT setup and integration costs, repayment of property tax abatements, and other costs totaling $ 0.2 million, which were included in General and Administrative Expenses for the year ended December 31, 2022. We recognize these costs as incurred or when they become realizable. Loss Contingencie s We may be subject to contingencies arising in the ordinary course of business, such as product liability and other product-related litigation, commercial litigation, environmental claims and proceedings, government investigations and guarantees and indemnifications. In assessing contingencies related to legal and environmental proceedings that are pending against the Company, or unasserted claims that are probable of being asserted, we record accruals for these contingencies to the extent that we conclude that a loss is both probable and reasonably estimable. If an amount within a range of loss appears to be a better estimate than any other amount within the range, we accrue that amount. Alternativ |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets, Net | 6 Months Ended |
Jun. 30, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets, Net | 2. Prepaid Expenses and Other Current Assets The following table presents the components of prepaid expenses and other current assets, as of: June 30, December 31, Prepaid insurance $ 256,966 $ 761,147 Prepaid inventory 262,251 897,108 Prepaid subscriptions and license fees 319,393 292,622 Prepaid advertising 117,317 166,872 Deposits 185,223 134,896 Other current assets 510,567 277,430 Prepaid and other current assets $ 1,651,717 $ 2,530,075 |
Revolving Lines of Credit
Revolving Lines of Credit | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Revolving Lines of Credit | 3. Revolving Lines of Credit On September 2, 2021, the Company entered into a revolving line of credit with Wells Fargo Bank National Association in a principal amount not exceeding $ 9,500,000 . The line of credit was renewed on September 1, 2022, with a maturity date of August 31, 2023 , and the available credit was reduced to $ 5,000,000 . The outstanding amounts under the line of credit have an interest rate calculated as Daily Simple Secured Overnight Financing Rate (“SOFR”) plus 1.5 % per annum until paid in full. The balance on the line of credit was $ 0 as of June 30, 2023 and December 31, 2022. Management was in compliance with all financial covenants as of June 30, 2023 and December 31, 2022. On August 10, 2017, the Company entered into a revolving line of credit with East Asset Management, LLC (“East”) in a principal amount not exceeding the lesser of the borrowing base or $ 3,000,000 . The outstanding amounts under the line of credit had a fixed interest rate of 15 % per annum until paid in full and the line of credit had a maturity date of August 10, 2022 . The loan agreement was closed on May 19, 2022. A secondary line of credit with East in an amount up to $ 200,000 was available to the Company, which was not subject to the requirements of the borrowing base. The secondary line was available with the same draw and payback conditions as the primary line. The loan agreement was closed on May 19, 2022. East was also granted a right of first refusal on any future equity offerings by the Company to purchase up to 20 % of equity in any such offerings at a 20 % price per share discount, subject to certain exclusions. These rights terminated concurrently with the closure of the associated loan agreements on May 19, 2022. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, net Property and Equipment, net Property and equipment, net is comprised of the following as of: June 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Depreciation Net Carrying Amount Gross Carrying Amount Accumulated Depreciation Net Carrying Amount Factory equipment $ — $ — $ — $ 66,276 $ ( 43,051 ) $ 23,225 Furniture and office equipment 216,975 ( 89,982 ) 126,993 318,795 ( 211,529 ) 107,266 Leasehold improvements 46,276 ( 18,109 ) 28,167 34,946 ( 15,148 ) 19,798 $ 263,251 $ ( 108,091 ) $ 155,160 $ 420,017 $ ( 269,728 ) $ 150,289 Depreciation expense was $ 23,857 and $ 60,088 for the three and six months ended June 30, 2023, respectively. Depreciation expense was $ 186,319 and $ 329,138 for the three and six months ended June 30, 2022, respectively. Assets Classified as Held-for-Sale In the first quarter of 2022, the Company entered into a vacant land real estate sale agreement for the sale of excess unused lots in Sisters, Oregon for a sales price of $ 1,572,512 . The Company sold the land in the second quarter of 2022 resulting in a gain of $ 573,818 included in general and administrative expenses. In the second quarter of 2022, the Company ent ered into a purchase order agreement for the sale of the intermittent motion form (“IMF”) production line for a sales price of $ 100,000 . The book value exceeded the fair market value and, as such, the Company recorded an impairment charge of $ 100,426 in the second quarter of 2022. The Company sold these assets in the third quarter of 2022 for $ 103,240 , recording a gain of $ 3,240 included in general and administrative expenses. In the fourth quarter of 2022, the Company entered into purchase agreements for the sale of the production equipment for a sales price of $ 800,000 . The book value exceeded the fair market value and, as such, the Company recorded impairment charges of $ 3,105,435 , included in general and administrative expenses. In the first half of 2023, consideration amounting to $ 349,649 was received and $ 450,351 was receivable and included in other current assets as of June 30, 2023. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 5. Goodwill and Intangible Assets, Net Goodwill The carrying amount of goodwill attributed to the acquisition of Picky Bars was $ 6,486,000 as of the acquisition date. In the last month of the first quarter of 2022, management determined the sustained decline in stock price, coupled with changes in market conditions, was a triggering event. The Company performed a qualitative and quantitative analysis on the Company's goodwill for impairment, concluding that the fair value of goodwill as calculated using a discounted cash flow model exceeds the carrying value, this indicating that goodwill is impaired. As such, the Company recorded a goodwill impairment of $ 0 and $ 6,486,000 for the three and six months ended June 30, 2022. There was no goodwill as of June 30, 2023 or December 31, 2022. Intangible Assets, Net Intangible Assets, net is comprised of the following: June 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade names ( 10 years) $ 890,827 $ ( 53,450 ) $ 837,377 $ 890,827 $ — $ 890,827 Recipes ( 10 years) 330,000 ( 71,500 ) 258,500 330,000 ( 55,000 ) 275,000 Social media agreements ( 3 years) 80,000 ( 57,778 ) 22,222 80,000 ( 44,444 ) 35,556 Software ( 3 years) 131,709 ( 61,134 ) 70,575 131,710 ( 40,975 ) 90,735 Definite-lived intangible assets 1,432,536 ( 243,862 ) 1,188,674 1,432,537 ( 140,419 ) 1,292,118 Licensing agreements (indefinite) 132,100 — 132,100 132,100 — 132,100 Total intangible assets $ 1,564,636 $ ( 243,862 ) $ 1,320,774 $ 1,564,637 $ ( 140,419 ) $ 1,424,218 The weighted-average useful life of all the Company’s intangible assets is 7.3 years. For the three and six months ended June 30, 2023, amortization expense was $ 51,722 and $ 103,444 , respectively. For the three and six months ended June 30, 2022, amortization expense was $ 103,741 and $ 245,223 , respectively. Definite life intangible assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Examples include a significant adverse change in the extent or manner in which we use the asset, or an unexpected change in financial performance. When evaluating definite life intangible assets for impairment, we compare the carrying value of the asset to the asset’s estimated undiscounted future cash flows. An impairment is indicated if the estimated future cash flows are less than the carrying value of the asset. The Company considered the above factors when assessing whether the Company’s long-lived assets will be recoverable. Based on the analysis of the qualitative factors above, management determined that with changes in market conditions and recent developments in the forecasts for e-commerce and wholesale sales of legacy Picky Bars products were triggering events during the three months ended June 30, 2022 and December 31, 2022. There were no triggering events or impairment charges in the three and six months ended June 30, 2023. The Company performed a qualitative and quantitative analysis, over the period May 1, 2021 through March 31, 2022 and from March 31, 2022 through December 31, 2022 on the Company's estimates of the fair values of acquired customer relationships utilizing the Multiperiod Excess Earnings Method variation of discounted cash-flow model, which exceeded the carrying value, indicating that these assets were impaired. In the three and six months ended June 30 , 2022, the Company recorded impairment charges of $ 0 and $ 1,432,000 , respectively , net of accumulated amortization. In the three months ended December 31, 2022, the Company recorded impairment charges of $ 344,006 , net of accumulated amortization. The Company performed a qualitative and quantitative analysis, over the period May 1, 2021 through March 31, 2022 and from March 31, 2022 through December 31, 2022 on the Company's estimates of the fair values of acquired trade names utilizing the Relief From Royalty Method variation discounted cash-flow model, which exceeded the carrying value, indicating that these assets were impaired. In the three and six months ended June 30, 2022 , the Company recorded impairment charges of $ 0 and $ 108,000 , respectively, net of accumulated amortization. In the three months ended December 31, 2022, the Company recorded impairment charges of $ 1,135,000 , net of accumulated amortization. Intangible assets are amortized using the straight-line method over estimated useful lives ranging from three to ten years . The estimated amortization expense for each of the next five years and thereafter is as follows: 2023 (excluding the six months ended June 30, 2023) $ 106,855 2024 195,931 2025 156,818 2026 146,723 2027 146,723 Thereafter 435,624 $ 1,188,674 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | 6. Leases Lessee In accordance with ASC 842, Leases , the Company accounts for a contract as a lease when it has the right to control the asset for a period of time while obtaining substantially all of the asset’s economic benefits. The Company determines if an arrangement is a lease or contains an embedded lease at inception. For arrangements that meet the definition of a lease, the Company determines the initial classification and measurement of its right-of-use asset and lease liability at the lease commencement date and, thereafter, if modified. The lease term includes any renewal options that the Company is reasonably assured to exercise. In addition to rent, the leases may require the Company to pay additional costs, such as utilities, maintenance and other operating costs, which are generally referred to as non-lease components. The Company has elected to not separate lease and non-lease components. Only the fixed costs for lease components and their associated non-lease components are accounted for as a single lease component and recognized as part of a right-of-use asset and liability. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using our incremental borrowing rate. Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. The Company leased its warehouse space under a commercial lease with RII Lundgren Mill, LLC, dated March 1, 2018. The lease commenced March 1, 2018 with monthly payments of $ 6,475 , to escalate after 24 months by the lesser of 3 % or the Consumer Price Index (“CPI”) adjustment. The initial lease term was ten years, and the Company had the option to renew the lease for two additional five-year periods. The Company executed a second lease for additional warehouse and office space under a commercial lease with RII Lundgren Mill, LLC, dated December 17, 2018. The lease commenced on July 1, 2019 with monthly payments of $ 12,784 , to escalate after 24 months by the lesser of 3 % or the CPI adjustment. However, for accounting purposes the lease commencement date was June 6, 2019. The initial lease term was ten years. The Company executed a third lease for additional warehouse and office space under a commercial lease with RII Lundgren Mill, LLC, dated October 1, 2021. The lease commenced on October 1, 2021 with monthly payments of $ 38,869 , to escalate after 24 months by the lesser of 3 % or the CPI adjustment. The initial lease term was ten years. The Company executed a lease cancellation agreement dated December 12, 2022. Under this agreement, the Company's three leases with RII Lundgren Mill, LLC, were terminated effective January 31, 2023, and the Company agreed to pay $ 1,550,000 , of which $ 500,000 was remitted in 2022 and $ 1,050,000 was satisfied in the first quarter of 2023. The Company ceased to realize any operational benefit from the leases as of December 31, 2022, and recorded losses on lease termination consisting of the write off of the related right of use assets, net of lease liabilities, as well as the lease termination fee, for a total of $ 3,596,365 , w hich were included in General and administrative expenses for the year ended December 31, 2022. The Company assumed an operating lease in the acquisition of Picky Bars, LLC on May 3, 2021. The Company pays monthly rent of $ 4,609 , which escalates by 3 % in months 15, 27, 39, and 51. The initial lease term is 62 months , and the Company has the option to renew the lease for two additional three-year periods. The Company entered into a sublease agreement with Somatic Experiencing Trauma Institute with a commencement date of January 1, 2023 , for a 5,257 square foot office space in Boulder, Colorado which serves as the Company's new headquarters. This lease will expire on July 1, 2027 . The Company will owe $ 99,883 in the first twelve months, which will increase by 3 % on the first day of each succeeding year. The components of lease expense were as follows: Three Months Ended Six Months Ended Operating leases Operating lease cost $ 38,085 $ 76,169 Variable lease cost 5,554 18,468 Operating lease expense 43,639 94,637 Short-term lease rent expense 56,960 173,187 Total rent expense $ 100,599 $ 267,824 Three Months Ended Six Months Ended Operating leases Operating lease cost $ 267,106 $ 534,213 Variable lease cost 27,635 80,638 Operating lease expense 294,741 614,851 Short-term lease rent expense 68,957 103,498 Total rent expense $ 363,698 $ 718,349 Six Months Ended Six Months Ended Operating cash flows - operating leases $ 62,923 $ 370,214 Right-of-use assets obtained in exchange for operating lease liabilities $ 344,382 $ 5,285,330 June 30, 2023 June 30, 2022 Weighted-average remaining lease term – operating leases (in years) 3.5 8.3 Weighted-average discount rate – operating leases 6.56 % 3.75 % As of June 30, 2023, future minimum payments during the next five years and thereafter are as follows: 2023 (excluding the six months ended June 30, 2023) $ 63,509 2024 138,800 2025 126,715 2026 109,145 2027 56,210 Total 494,379 Less imputed interest ( 61,963 ) Operating lease liabilities $ 432,416 Lessor The Company executed a sublease agreement of the Picky Bars, LLC operating lease on March 1, 2022. The lease commenced on April 1, 2022. The sublessee pays monthly rent of $ 4,889 beginning August 1, 2022, to escalate after 12 months by 3 %. The initial lease term expires on April 30, 2025 . The lease meets all of the criteria of an operating lease and is accordingly recognized straight line over the lease term with a related sublease rental asset accounting for abatements and initial direct costs. The Company had $ 15,657 and $ 18,846 of sublease rental assets as of June 30, 2023 and December 31, 2022, respectively, included in prepaid and other current assets on the unaudited consolidated condensed balance sheets. The components of rental income were as follows: Three Months Ended Six Months Ended Operating leases Operating lease income $ 14,055 $ 28,110 Variable lease income 5,318 10,635 Total rental income $ 19,373 $ 38,745 As of June 30, 2023, future minimum payments to be received during the next five years and thereafter are as follows: 2023 (excluding the six months ended June 30, 2023) 30,216 2024 61,640 2025 20,748 Total $ 112,604 |
Deferred Tax Assets and Liabili
Deferred Tax Assets and Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets and Liabilities | 7. Deferred Tax Assets and Liabilities The Company had a tax net loss for the three and six months ended June 30, 2023 and 2022 , and therefore has recorded no assessment of current federal income taxes. The Company is subject to minimum state taxes for various jurisdictions as well as subject to franchise taxes considered income taxes under ASC 740. A reconciliation of income tax expense at the federal statutory rate to the income tax provision at the Company's effective rate is as follows: Six Months Ended June 30, 2023 June 30, 2022 Income tax benefit at statutory rates $ 1,604,134 $ 2,968,062 Valuation allowance for deferred tax assets ( 1,625,391 ) ( 2,947,086 ) Stock-based compensation ( 17,634 ) ( 12,642 ) Other benefit, net 25,719 ( 14,108 ) Reported income tax expense $ ( 13,172 ) $ ( 5,774 ) Effective tax rate: 0.2 % 0.0 % The Company’s deferred tax assets consisted of the following as of: June 30, 2023 December 31, 2022 Noncurrent deferred tax assets: Net operating loss carryforwards $ 19,201,198 $ 17,428,266 Intangible assets 2,163,563 2,382,397 Property and equipment 1,554,492 1,660,954 Research and development credits 348,427 300,105 Accrued expenses 866,024 766,385 Right of use asset 3,993 524 Bad debt allowance 33,736 20,282 Charitable contributions 40,782 38,557 Unexercised options 1,235,230 1,136,475 Capitalized research and development costs 242,052 194,320 Total noncurrent deferred tax assets 25,689,497 23,928,265 Valuation allowance ( 25,689,497 ) ( 23,928,265 ) Total net deferred tax assets $ — $ — The Company assesses its deferred tax assets and liabilities to determine if it is more likely than not that they will be realized; if not, a valuation allowance is required to be recorded. As of June 30, 2023 , the Company did not provide a current or deferred U.S. federal or state income tax provision or benefit for any of the periods presented because the Company has reported cumulative losses since inception. Management has determined that it was not more likely than not that the deferred tax assets would be realized, thus a full valuation allowance was recorded against the deferred tax assets. The Company may reduce the valuation allowance against definite-lived deferred tax assets at such a time when it becomes more likely than not that the definite-lived deferred tax assets will be realized. The Company has recorded a provision for state income taxes and a corresponding current state tax payable of approximately $ 14,350 . The changes in the valuation allowance for deferred tax assets and liabilities for the six months ended June 30, 2023 and 2022 were net increases of $ 1.8 million and $ 4.5 million, respectively. At June 30, 2023 and December 31, 2022 , the Company had NOLs totaling approximately $ 131.3 million and $ 118.6 million, respectively. At June 30, 2023 and December 31, 2022 , the Company had federal NOLs totaling approximately $ 1.9 million from 2017 and prior years that can be carried forward for 20 years , which begin to expire in 2036. At June 30, 2023 and December 31, 2022 , the Company had federal NOLs totaling approximately $ 74.4 million and $ 67.5 million, respectively from 2018 and subsequent years that can be carried forward indefinitely . At June 30, 2023 and December 31, 2022 , the Company had state NOLs totaling $ 55.0 million and $ 49.3 million, respectively, that can be carried forward for between 15 and 20 years. At June 30, 2023 and December 31, 2022 , the Company had credits totaling $ 0.4 million and $ 0.3 million, respectively, that can be carried forward for between 5 and 20 years. GAAP requires management to evaluate and report information regarding its exposure to various tax positions taken by the Company. The Company has determined whether there are any tax positions that have met the recognition threshold and has measured the Company’s exposure to those tax positions. Management believes that the Company has adequately addressed all relevant tax positions and that there are no unrecorded tax liabilities. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. U.S. and state jurisdictions have statutes of limitations that generally range from 3 to 5 years. |
Stock Incentive Plan
Stock Incentive Plan | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plan | 8. Stock Incentive Plan The Company adopted an incentive plan (the “2020 Omnibus Incentive Plan”) on September 22, 2020, to provide for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock units, unrestricted stock, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards and cash bonus awards to Company employees, employees of the Company’s affiliates, non-employee directors and certain consultants and advisors. As of June 30, 2023, the Company is authorized to award 1,124,160 shares under the 2020 Omnibus Incentive Plan. Previously, the Company had adopted its 2018 Equity Incentive Plan and 2016 Stock Incentive Plan (together with the 2020 Omnibus Incentive Plan, the “Stock Incentive Plans”), under which the Company had issued stock options and restricted stock units. Following the effective date of the 2020 Omnibus Incentive Plan, no additional awards may be made under the 2018 Equity Incentive Plan or 2016 Stock Incentive Plan. The Stock Incentive Plans were established to provide eligible individuals with an incentive to contribute to the Company’s success and to operate and manage the Company’s business in a manner that will provide for its long-term growth and profitability and that will benefit the Company’s shareholders and other stakeholders, including employees and customers. The Stock Incentive Plans are also intended to provide a means of recruiting, rewarding, and retaining key personnel. Stock Options The Stock Incentive Plans prescribe various terms and conditions for the award of options and the total number of shares authorized for this purpose. For options, the strike price is equal to the fair value of the Company’s stock price at the date of grant. Generally, options become exercisable based on years of service and vesting schedules, and expire after (i) a period of ten years from the date of grant, (ii) three months following the date of termination of employment from the Company, (iii) one year following the date of termination from the Company by reason of death or disability, (iv) the date of termination of employment for cause, or (v) the fifth anniversary of the date of the grant if it is held by a 10 percent or greater stockholder. The following tables summarize the Company’s stock option activ ity: Options Weighted Average Weighted Average Aggregate Balance at January 1, 2023 921,657 $ 6.86 8.00 $ — Granted 400,000 $ 0.81 Exercised/released — $ — Cancelled/forfeited ( 24,164 ) $ 9.99 Balance at June 30, 2023 1,297,493 $ 4.94 7.74 $ — Exercisable at June 30, 2023 318,041 $ 8.72 5.18 $ — Options Weighted Average Weighted Average Aggregate Balance at January 1, 2022 747,800 $ 11.51 6.57 $ 1,143,013 Granted 453,498 $ 7.21 Exercised/released ( 76,750 ) $ 2.14 Cancelled/forfeited ( 192,283 ) $ 17.05 Balance at June 30, 2022 932,265 $ 9.02 7.81 $ — Exercisable at June 30, 2022 419,565 $ 9.76 5.82 $ — The Company estimates the fair value of each stock option award on the date of grant using a Black-Scholes option-pricing model. ASC 718, Compensation - Stock Compensation (“ASC 718”), requires the use of the fair-value-based method for measuring the value of stock-based compensation. The estimated fair value of each grant of stock options awarded was determined using the following assumptions: • Expected Volatility . The expected volatility is based on the volatility of the historical stock prices of identified peer companies. • Expected Term. Due to the lack of a public market for the trading of shares of the Company’s common stock prior to the Company’s initial public offering that closed on September 25, 2020, and the lack of sufficient Company-specific historical data, the expected term of employee stock options is determined using the “simplified” method, as prescribed in SEC Staff Accounting Bulletin No. 107, Share Based Payments , whereby the expected life equals the arithmetic average of the vesting term and the original contractual term of the option. • Risk-free Interest Rate. The risk-free interest rate is based on the interest rate payable on the United States Treasury yield curve in effect at the time of grant for a period that is commensurate with the assumed expected term. • Dividend Yield. The dividend yield is 0 % because the Company has never paid, and for the foreseeable future does not expect to pay, dividends on its shares of common stock. The inputs and assumptions used to estimate the fair value of share-based payment awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different inputs and assumptions, the Company’s share-based compensation expense could be materially different for future awards. T he grant-date fair value of stock options was estimated at the time of grant using the following weighted-average inputs and assumptions in the Black-Scholes option pricing model: Six Months Ended 2023 2022 Weighted-average expected volatility 57.96 % 52.36 % Weighted-average expected term (years) 6.25 6.25 Weighted-average expected risk-free interest rate 3.50 % 2.27 % Dividend yield — — Weighted-average fair value of options granted $ 0.55 $ 2.79 Restricted Stock Units The following tables summarize the Company’s RSU activ ity: Number of RSUs Weighted Average Weighted Average Aggregate Balance at January 1, 2023 504,420 $ 4.22 2.94 $ 2,127,734 Granted 645,000 $ — Exercised/released ( 141,361 ) $ 4.25 Cancelled/forfeited ( 16,293 ) $ 6.00 Balance at June 30, 2023 991,766 $ 1.99 2.86 $ 1,968,741 Number of RSUs Weighted Average Weighted Average Aggregate Balance at January 1, 2022 90,630 $ 32.91 2.17 $ 2,982,931 Granted 445,702 $ 4.74 Exercised/released ( 19,061 ) $ 26.92 Cancelled/forfeited ( 27,037 ) $ 31.01 Balance at June 30, 2022 490,234 $ 7.64 3.26 $ 3,747,835 The Company estimates the fair value of each restricted stock unit using the fair value of the Company’s stock on the date of grant. Market-Based Stock Units The following tables summarize the Company’s market-based stock unit ("MSU") activ ity: Number of MSUs Weighted Average Weighted Average Aggregate Balance at January 1, 2023 31,083 $ 43.53 0.60 $ 1,353,043 Granted — $ — Exercised/released — $ — Cancelled/forfeited ( 9,769 ) $ 43.53 Balance at June 30, 2023 21,314 $ 43.53 0.29 $ 927,798 Number of MSUs Weighted Average Weighted Average Aggregate Balance at January 1, 2022 160,301 $ 43.53 1.20 $ 6,977,903 Granted — $ — Exercised/released — $ — Cancelled/forfeited ( 129,218 ) $ 43.53 Balance at June 30, 2022 31,083 $ 43.53 0.87 $ 1,353,043 These MSUs vest upon the 30 -day weighted average stock price reaching or exceeding established targets, after reaching certain time targets. We estimate the grant-date fair value of the MSUs using a Monte Carlo simulation which requires assumptions for expected volatility, risk-free rate of return and dividend yield. Expected volatility within the index are derived using historical volatility of a selected peer group over a period equal to the length of the performance period. We base the risk-free rate of return on the yield of a zero-coupon U.S. Treasury bond with a maturity equal to the performance period and assume a 0 % dividend rate. Compensation expense for these MSUs is recognized over the requisite service period regardless of whether the market conditions are satisfied. Employee Stock Purchase Plan On September 25, 2020, the Company established an Employee Stock Purchase Plan (“ESPP”) which allows employees of the Company to purchase common stock of the Company through accumulated payroll deductions. Offerings under this plan have a duration of six months. On the exercise date, the participant may acquire a maximum of 650 shares per participant, per offering period, at the lower of 85 % of the market value of a share of our common stock on the enrollment date or the exercise date. Participants may terminate their interest in a given offering or a given exercise period by withdrawing all of their accumulated payroll deductions at any time prior to the end of the offering period. The fair value of the estimated number of shares to be issued under each offering was determined using a component valuation model. This plan was terminated in the fourth quarter of 2022. Stock-Based Compensation Stock -based compensation expense is recognized ratably over the requisite service period for all awards. The following tables summarize the Company’s stock-based compensation recorded as a result of applying the provisions of ASC 718 to equity awards: Three months ended Six months ended Unrecognized compensation cost related to non-vested awards as of June 30, 2023 Weighted-average remaining vesting period as of June 30, 2023 (years) Stock options $ 100,196 $ 161,684 $ 1,090,875 2.91 RSUs 195,915 354,630 23,651 2.74 MSUs 9,965 ( 62,603 ) 1,777,578 0.59 Total stock-based compensation $ 306,076 $ 453,711 $ 2,892,104 2.79 Cost of goods sold $ 780 $ ( 116 ) $ 6,120 1.99 General and administrative 286,682 421,924 2,632,234 2.73 Sales and marketing 18,614 31,903 253,750 3.43 Total stock-based compensation $ 306,076 $ 453,711 $ 2,892,104 2.79 Three months ended Six months ended Unrecognized compensation cost related to non-vested awards as of December 31, 2022 Weighted-average remaining vesting period as of December 31, 2022 (years) Stock options $ 80,408 $ 186,857 $ 1,173,758 3.24 RSUs 377,538 740,876 1,707,145 2.91 MSUs ( 668,782 ) ( 1,133,244 ) 71,059 1.09 ESPP 1,594 7,065 — — Total stock-based compensation $ ( 209,242 ) $ ( 198,446 ) $ 2,951,962 3.07 Cost of goods sold $ 10,086 $ 25,506 $ 14,354 2.56 General and administrative ( 259,475 ) ( 313,969 ) 2,734,728 2.93 Research and product development 2,298 ( 6,067 ) 2,517 0.73 Sales and marketing 37,849 96,084 200,363 3.84 Total stock-based compensation $ ( 209,242 ) $ ( 198,446 ) $ 2,951,962 3.07 There were forfeitures of MSU awards of certain members of executive leadership of $ 0 and $ 149,735 for the three and six months ended June 30, 2023 , and of $ 901,801 and $ 1,785,125 d uring the three and six months ended June 30, 2022 , respectively, representing discrete reversals of stock compensation expense to the periods. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 9. E arnings per Share Basic earnings (loss) per share is determined by dividing the net loss attributable to Laird Superfood, Inc. common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is similarly determined, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. Dilutive potential common shares consist of employee stock options, restricted stock units, and market based stock units. The dilutive effect of employee stock options, restricted stock units, and market-based stock units by the Company are calculated using the treasury stock method. Basic earnings per share is reconciled to diluted earnings per share in the following table: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net loss $ ( 3,507,246 ) $ ( 4,904,520 ) $ ( 7,651,156 ) $ ( 19,043,922 ) Weighted average shares outstanding - basic and diluted 9,284,585 9,132,632 9,249,738 9,114,527 Basic and diluted: Net loss per share, basic and diluted $ ( 0.38 ) $ ( 0.54 ) $ ( 0.83 ) $ ( 2.09 ) Common stock options, restricted stock awards, and market-based stock awards excluded due to anti-dilutive effect 2,310,573 1,453,582 2,310,573 1,453,582 |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations | 10. C oncentrations The Company had 78 % of trade accounts receivable from three customers as of June 30, 2023 . The Company had 68 % of trade accounts receivable from two customers as of December 31, 2022. The Company had 13 % of accounts payable due to one vendor as of June 30, 2023 . The Company had 41 % of accounts payable due to two vendors as of December 31, 2022. The Company sold a substantial portion of products to three customers ( 49 %) and three customers ( 45 %), respectively, for the three and six months ended June 30, 2023. As of June 30, 2023 , the amount due from these customers was $ 1,608,326 . The Company sold a substantial portion of products to two customers ( 21 %) and one customer ( 12 %) for the three and six months ended June 30, 2022. As of June 30, 2022 , the amount due from these customers included in accounts receivable was $ 556,117 . The Company purchased a substantial portion of products from three suppliers ( 33 %) and two suppliers ( 26 %) for the three and six months ended June 30, 2023 . The Company purchased a substantial portion of products from three suppliers ( 51 %) and two suppliers ( 64 %), respectively, for the three and six months ended June 30, 2022. In addition, our top suppliers are in a similar geographic area, which increases the risk of significant supply disruptions from local and regional events. Indonesia geographically accounted for approximately 11 % and 12 %, respectively, of our total raw materials and packaging purchases for the three and six months ended June 30, 2023 . Indonesia, Sri Lanka, and Vietnam geographically accounted for approximately 51 % and 64 % of our total raw materials and packaging purchases for the three and six months ended June 30, 2022 . |
Related Party
Related Party | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party | 11. Related Party FASB ASC Topic 850, Related Party Disclosures , requires that information about transactions with related parties that would influence decision making shall be disclosed so that users of the financial statements can evaluate their significance. The Company conducts business with suppliers and service providers who are also stockholders of the Company. From time to time, service providers are offered shares of common stock as compensation for their services. Shares provided as compensation are calculated based on the grant date fair value of the service provided. Additional material related party transactions are noted below. License Agreements On May 26, 2020, the Company executed a License and Preservation Agreement which superseded the predecessor license and preservation agreement with both Mr. Hamilton and Ms. Reece. Among other modifications, the agreement (i) modified certain approval rights, (ii) modified certain assignment, change of control and indemnification provisions, and (iii) granted the Company the right to extend the term of the agreement for additional ten-year terms upon the expiration of the initial one-hundred-year term. No additional consideration was exchanged in connection with the agreement. See additional discussion related to the 2020 License in Note 1 of the unaudited consolidated condensed financial statements. Marketing Agreements The Company has an influencer agreement with Gabby Reece to provide certain marketing services. In connection with these services, in the three and six months ended June 30, 2023, advertising expenses totaling $ 125,198 and $ 264,525 , respectively, were included in sales and marketing expenses in the unaudited consolidated condensed statements of operations. In the three and six months ended June 30, 2022 , advertising expenses totaling $ 22,750 and $ 33,250 , respectively, were i ncluded in sales and marketing expenses in the unaudited consolidated condensed statements of operations. As of June 30, 2023 and December 31, 2022, amounts payable to Gabby Reece of $ 34,847 and $ 16,500 , respectively, were included in accrued expenses in the unaudited consolidated condensed balance sheets. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 12. Revenue Recognition The Company’s primary source of revenue is sales of coffee creamers, hydration and beverage enhancing supplements, harvest snacks and other food items, and coffee, tea and hot chocolate products. The Company recognizes revenue when control of the promised good is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales. Each delivery or shipment made to a third-party customer is considered to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collect the sales price under normal credit terms. Additionally, the Company estimates the impact of certain common practices employed by us and other manufacturers of consumer products, such as scan-based trading, product rebate and other pricing allowances, product returns, trade promotions, sales broker commissions and slotting fees. These estimates are recorded at the end of each reporting period. In accordance with ASC 606, the Company disaggregates net sales from contracts with customers based on the characteristics of the products sold: Three Months Ended June 30, 2023 2022 $ % of Total $ % of Total Coffee creamers $ 4,636,807 60 % $ 4,694,975 54 % Hydration and beverage enhancing supplements 998,309 13 % 1,296,779 15 % Harvest snacks and other food items 1,845,016 24 % 1,713,441 20 % Coffee, tea, and hot chocolate products 1,973,437 26 % 1,568,142 18 % Other 124,952 2 % 419,390 5 % Gross sales 9,578,521 125 % 9,692,727 112 % Shipping income 259,843 2 % 291,410 3 % Returns and discounts ( 2,114,273 ) ( 27 )% ( 1,310,131 ) ( 15 )% Sales, net $ 7,724,091 100 % $ 8,674,006 100 % Six Months Ended June 30, 2023 2022 $ % of Total $ % of Total Coffee creamers $ 9,754,167 62 % $ 10,149,382 56 % Hydration and beverage enhancing supplements 1,669,159 11 % 2,754,210 15 % Harvest snacks and other food items 3,598,042 23 % 3,400,232 19 % Coffee, tea, and hot chocolate products 3,942,732 25 % 3,384,327 19 % Other 154,681 1 % 657,713 4 % Gross sales 19,118,781 122 % 20,345,864 113 % Shipping income 563,069 2 % 539,602 3 % Returns and discounts ( 3,844,821 ) ( 24 )% ( 2,871,447 ) ( 16 )% Sales, net $ 15,837,029 100 % $ 18,014,019 100 % The Company generates revenue through two channels: e-commerce and wholesale: Three Months Ended June 30, 2023 2022 $ % of Total $ % of Total E-commerce $ 4,139,373 54 % $ 5,178,819 60 % Wholesale 3,584,718 46 % 3,495,187 40 % Sales, net $ 7,724,091 100 % $ 8,674,006 100 % Six Months Ended June 30, 2023 2022 $ % of Total $ % of Total E-commerce $ 8,567,054 54 % $ 10,602,770 59 % Wholesale 7,269,975 46 % 7,411,249 41 % Sales, net $ 15,837,029 100 % $ 18,014,019 100 % Receivables from contracts with customers are included in Accounts receivable. Contract assets include deferred costs of goods sold associated with deferred revenue and are included in finished goods inventories. Contract liabilities include deferred revenue, customer deposits, rewards programs, and refund liabilities, and are included in accrued expenses. The balances of receivables from contracts with customers, contract assets, and contract liabilities were as follow: January 1, December 31, June 30, Accounts receivable, net $ 1,268,718 $ 1,494,469 $ 1,814,461 Contract assets $ 8,316 $ 57,249 $ 101,220 Contract liabilities $ ( 200,914 ) $ ( 443,227 ) $ ( 348,121 ) |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Laird Superfood is an emerging consumer products platform focused on manufacturing and marketing highly differentiated, plant-based and functional foods. The core pillars of the Laird Superfood platform are Superfood Creamer coffee creamers, Hydrate hydration products and beverage enhancing supplements, harvest snacks and other food items, and functional roasted and instant coffees, teas and hot chocolate. The Company was founded in 2015. |
Basis of Accounting | Basis of Accounting The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and rules and regulations of the Securities and Exchange Commission (“SEC”). Operating results include the three and six months ended June 30, 2023 and 2022 . Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. |
Unaudited Interim Consolidated Condensed Financial Information | Unaudited Interim Consolidated Condensed Financial Information In the opinion of the Company, the accompanying unaudited consolidated condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of its financial position and its results of operations, changes in stockholders’ equity and cash flows. The accompanying unaudited consolidated condensed financial statements and related financial information should be read in conjunction with the Company's fiscal year 2022 Form 10-K filed with the SEC on March 16, 2023. The unaudited consolidated condensed balance sheet as of December 31, 2022 was derived from the audited annual consolidated financial statements. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results expected for the fiscal year ending December 31, 2023 . |
Use of Estimates | Use of Estimates The preparation of the unaudited consolidated condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience, known trends and events and various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Although management believes its estimates and assumptions are reasonable when made, they are based upon information available at the time they are made. Management evaluates the estimates and assumptions on an ongoing basis and, if necessary, makes adjustments. Due to the risks and uncertainties involved in the Company’s business and evolving market conditions and given the subjective element of the estimates and assumptions made, actual results may differ from estimated results. The most significant estimates and judgments include those related to allowances for doubtful accounts and returns, inventory obsolescence, goodwill, intangible assets, valuation allowance for deferred taxes, reserves on prepaid expenses, the discount rates used in determining right of use assets and related lease liabilities, valuation of inventory, trade and sales promotion liabilities, and fair value of stock-based compensation. |
Segment reporting | Segment reporting The Company currently has one operating segment. In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company considers operating segments to be components of the Company’s business for which separate financial information is available and is evaluated regularly by management in deciding how to allocate resources and in assessing performance. Management reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating and reportable segment. Substantially all product sales for the periods provided were derived from domestic sales. See Note 12 for additional information regarding sales by platform within the Company’s single segment. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash are highly liquid instruments with an original maturity of three months or less when purchased. For the purposes of the statements of cash flows, the Company includes cash on hand, cash in clearing accounts, cash on deposit with financial institutions, investments with an original maturity of three months or less, and restricted cash in determining the total balance. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet. June 30, December 31, Cash and cash equivalents $ 10,476,770 $ 17,710,277 Restricted cash 99,525 99,525 Total cash, cash equivalents, and restricted cash $ 10,576,295 $ 17,809,802 Amounts in restricted cash represent those that are required to be set aside by contractual agreement. On December 3, 2020, the Company entere d into an agreement with Danone Manifesto Ventures, PBC, which provided the Company $ 298,103 in funds for the purpose of supporting three COVID-19 relief projects. During the three and six months ended June 30, 2023, we contributed $ 0 to these projects. During the three and six months ended June 30, 2022 we contributed $ 10,068 and $ 14,839 , respectively , to these projects. The restriction will be released upon the completion of the projects. Cash equivalents in the amount of $ 6,325,000 as of June 30, 2023 were pledged to secure our revolving line of credit and company credit card limits. See Note 3 for additional information. Cash, cash equivalents, and restricted cash balances that exceeded the Federal Deposit Insurance Corporation (“FDIC”) insurable limits as of June 30, 2023 and December 31, 2022 totaled $ 462,616 and $ 2,747,721 , respectively. The Company has never experienced any losses related to these balances. The Company’s cash, cash equivalents, and restricted cash are with what the Company believes to be a high-quality issuer and considers the risks associated with these funds in excess of FDIC insurable limits to be low. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable, net consists principally of trade receivables, which are recorded at the invoiced amount, net of allowances for credit loss. Trade receivables do not bear interest. Receivables are considered past due or delinquent according to contract terms. Management closely monitors outstanding balances and writes off accounts receivable as they are determined uncollectible. The primary indicators of the credit quality of our receivables are aging and payment history and are assessed on a quarterly basis. Our credit loss exposure is concentrated in our accounts receivable portfolio. Our allowance for credit losses is calculated using a loss-rate method based on historical experience and reasonable forecasts. Based on these factors, management determined an allowance for credit loss of $ 128,799 and $ 77,436 as of June 30, 2023 and December 31, 2022 , respectively. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value, or the value of consideration that can be received upon sale of said product, and approximate costs determined on the first-in first-out basis and consists primarily of raw materials and packaging and finished goods and include direct labor and allocable overhead. The following table presents the components of inventory, net of reserves, as of: June 30, December 31, Raw materials and packaging $ 2,674,183 $ 3,764,804 Finished goods 3,183,102 1,931,761 Total inventory, net $ 5,857,285 $ 5,696,565 The Company periodically reviews the value of items in inventory and provides write-offs of inventory based on current market assessment, which are charged to cost of goods sold. For the three and six months ended June 30, 2023, the Company recorded $ 262,718 and $ 627,742 , respectively, of inventory obsolescence and disposal costs. For the three and six months ended June 30, 2022, the Company recorded $ 135,645 and $ 1 40,075 , respectively, of inventory obsolescence and disposal costs. As of June 30, 2023 inventory reserv es totaled $ 1,387,894 . This is comprised of estimated reserves based on inventory turnover, quantities on hand, and expiration dates of $ 493,331 , as well as raw materials and finished goods specifically identified for disposal related to a product quality issue of $ 552,909 and discontinued inventories of $ 341,744 . A s of December 31, 2022 , inventory reserves totaled $ 1,545,033 . This was comprised of estimated reserves based on inventory turnover, quantities on hand, and expiration dates of $ 746,966 , reserves specifically identified for disposal related to a product quality issue of $ 559,042 and discontinued inventories following exit activities of $ 239,025 . As of June 30, 2023 and December 31, 2022, the Company had a total of $ 262,251 and $ 897,108 , respectively, of prepayments for future raw materials inventory which are included in prepaid expenses and other current assets, net on the unaudited consolidated condensed balance sheets. |
Property and Equipment, net | Property and Equipment, net Property and equipment are valued at cost, net of accumulated depreciation. Expenditures for maintenance and repairs that do not extend the useful life or increase the value of the assets are charged to expense in the period incurred. Additions and betterments are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for depreciation purposes for furniture and factory equipment range from 3 to 7 years. The useful life for leasehold improvements is the lesser of the lease term or the useful life. Construction in progress is not depreciated until such a time that the assets are completed and placed into service. |
Fixed Assets Held-for-Sale | Fixed Assets Held-for-Sale Long-lived assets identified by the Company for sale, which have met all criteria to be classified as held for sale, are disclosed separately on the balance sheet. Fixed assets held for sale are measured at the lower of the assets carrying amount or fair value less costs to sell, and depreciation is no longer recorded. See Note 4 for more information. |
Leases | Leases We categorize leases at their inception as either operating, finance, or short-term leases. Lease agreements effective during the three and six months ended June 30, 2023 and 2022 cover, or covered, office space, warehouse and distribution space, vehicles, and equipment. All of our long-term leases are operating leases. Operating leases are included in right-of-use assets, current lease liabilities, and long-term lease liabilities in our unaudited consolidated condensed balance sheets. Leased assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. We use a secured incremental borrowing rate as the discount rate for present value of lease payments when the rate implicit in the contract is not readily determinable. For operating leases with variable payments dependent upon an index or rate that commenced subsequent to the adoption of ASC 842, Leases , we apply the active index or rate as of the lease commencement date. Variable lease payments not based on an index or rate are not included in the operating lease liability as they cannot be reasonably estimated and are recognized in the period in which the obligation for those payments is incurred. Leases that have a term of twelve months or less upon commencement date are considered short-term in nature. Accordingly, short-term leases are not included on the unaudited consolidated condensed balance sheets and are expensed on a straight-line basis over the lease term, which commences on the date we have the right to control the property. We are the lessor in a sublease agreement. This lease is an operating lease and is recognized straight line over the lease term with a related sublease rental asset accounting for abatements and initial direct costs. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with the five-step model as prescribed by ASC 606, Revenue from Contracts with Customers , in which the Company evaluates the transfer of promised goods or services and recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to be entitled to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the Company satisfies a performance obligation. The Company has elected, as a practical expedient, to account for the shipping and handling as fulfillment costs, rather than as a separate performance obligation. Methodologies for determining these provisions are dependent on customer pricing and promotional practices. The Company records reductions to revenue and a refund liability for estimated product returns and pricing adjustments in the same period that the related revenue is recorded. These estimates are based on industry-based historical data, historical sales returns, if any, analysis of credit memo data, and other factors known at the time. See Note 12 for additional information regarding revenue recognition. |
Cost of Goods Sold | Cost of Goods Sold Cost of goods sold includes material, packaging, co-packing fees, distribution freight, labor and overhead costs incurred in the storage and distribution of products sold in the period. Material costs include the cost of products purchased. In 2023, labor and overhead costs consisted of indirect product costs and freight, and in 2022 also included wages and benefits for manufacturing, planning, and logistics personnel, depreciation, and facility costs. |
Shipping and Handling | Shipping and Handling Costs of shipping and handling related to sales revenue are included in cost of goods sold. Shipping and handling costs totaled $ 1,294,999 and $ 2,869,314 , respectively, for the three and six months ended June 30, 2023. Shipping and handling costs totaled $ 1,602,342 and $ 3,141,555 for the three and six months ended June 30, 2022. Income generated from shipping costs billed through to customers was included in Sales, net in the unaudited consolidated condensed statements of operations. Shipping income totaled $ 259,843 and $ 563,069 , respectively, for the three and six months ended June 30, 2023. Shipping income totaled $ 291,410 and $ 539,602 , respectively, for the three and six months ended June 30, 2022 . |
Research and Product Development | Research and Product Development Amounts spent on research and development activities are expensed as incurred as Research and product development expense on the unaudited consolidated condensed statements of operations. Research and product development expense was $ 82,324 and $ 166,190 , respectively, for the three and six months ended June 30, 2023. Research and product development expense was $ 116,467 and $ 220,300 , respectively, for the three and six months ended June 30, 2022 . |
Advertising | Advertising Advertising costs are expensed when incurred. Advertising expenses for the three and six months ended June 30, 2023 were $ 1,155,789 and $ 2,316,997 , respectively. Advertising expenses for the three and six months ended June 30, 2022 were $ 1,567,465 and $ 3,359,202 , respectively. |
Marketing | Marketing Marketing costs are expensed when incurred. Marketing expenses for the three and six months ended June 30, 2023 were $ 892,776 and $ 1,785,564 , respectively. Marketing expenses for the three and six months ended June 30, 2022 were $ 1,096,025 and $ 2,158,670 , respectively. |
Income Taxes | Income Taxes Income taxes provide for the tax effects of transactions reported in the unaudited consolidated condensed financial statements and consist of income taxes currently due and deferred tax assets and liabilities. The Company may also be subject to interest and penalties from taxing authorities on underpayment of income taxes. In such an event, interest and penalties are included in income tax expense. Deferred tax assets and liabilities are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate primarily to depreciable assets (use of different depreciation methods and lives for financial statement and income tax purposes), stock-based compensation, right of use assets, and net operating losses. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Due to the historical net loss position of the Company, the Company recorded a deferred tax valuation allowance of $ 25,689,497 and $ 23,928,265 as of June 30, 2023 and December 31, 2022 , respectively. |
Stock Incentive Plan | Stock Incentive Plan The compensation cost relating to share-based payment transactions is recognized in the unaudited consolidated condensed financial statements. The cost is measured based on the grant date fair value of the equity or liability instruments issued. Compensation cost for all employee stock awards is calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Compensation cost for all consultant stock awards is calculated and recognized over the consultant’s service period based on the grant date fair value of the equity or liability instruments issued. Upon exercise of stock option awards or vesting of restricted stock units ("RSUs") and market-based stock units ("MSUs"), recipients are issued shares of common stock. Pre-vesting forfeitures result in the reversal of all compensation cost as of the date of termination; post-vesting cancellation does not. |
Earnings per Share | Earnings per Share Basic earnings per share is computed on the basis of the weighted average number of shares of common stock that were outstanding during the period. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if all dilutive potential common stock had been issued and is calculated under the treasury stock method. Due to the Company’s net loss, all outstanding stock options, RSUs, and MSUs are anti-dilutive and excluded. |
License Agreement – Indefinite Lived Intangible Asset | License Agreement – Indefinite Lived Intangible Asset On August 3, 2015, the Company entered into a license agreement with the Company’s co-founder Laird Hamilton (the “LH License”). The LH License stated Laird Hamilton’s contribution to the Company was in the form of intellectual property, granting the Company the right to use Laird Hamilton’s name and likeness. This contribution, which was reported on the unaudited consolidated condensed balance sheets as of June 30, 2023 and December 31, 2022 , was valued at $ 132,000 and satisfied with the issuance of 660,000 shares of common stock. The Company has determined that the intangible asset associated with the LH License has an indefinite life, as there is no foreseeable limit on the period of time over which it is expected to contribute to the cash flows of the Company. On May 2, 2018, the Company entered into a license agreement with Gabrielle Reece, who is married to Mr. Hamilton (the “GR License”). Pursuant to the GR License, Ms. Reece granted the Company rights to her name, signature, voice, picture, image, likeness and biographical information commencing on July 1, 2015. This contribution, which is reported on the unaudited consolidated condensed balance sheets as of June 30, 2023 and December 31, 2022 , was valued at $ 100 based on the consideration exchanged. The Company has determined that the intangible asset associated with the GR License has an indefinite life, as there is no foreseeable limit on the period of time over which it is expected to contribute to the cash flows of the Company. On November 19, 2018, the Company executed a License and Preservation Agreement with Mr. Hamilton and Ms. Reece which superseded the predecessor license agreements with both individuals. The agreement added specific terms related to non-competition and allowable usage of the property under the license. No additional consideration was exchanged in connection with the agreement and the life of the agreement was set at 100 years. On May 26, 2020, the Company executed a License and Preservation Agreement with Mr. Hamilton and Ms. Reece (the “2020 License”), which superseded the predecessor license and preservation agreement with both individuals. Among other modifications, the agreement (i) modified certain approval rights of Mr. Hamilton and Ms. Reece for use of their respective images, signatures, voices, and names (other than those owned by the Company), rights of publicity and common law and statutory rights to the foregoing in the Company’s products, (ii) modified certain assignment, change of control and indemnification provisions, and (iii) granted the Company the right to extend the term of the agreement for additional ten-year terms upon the expiration of the initial one-hundred year term. No additional consideration was exchanged in connection with the agreement. As indefinite-lived intangibles, the Company assesses qualitative factors each reporting period to determine whether events and circumstances exist that indicate that the fair values of the licensing agreements were less than the carrying amounts. Upon considering these factors, the Company determined it was more likely than not that the fair value of the 2020 License was not less than the carrying amount; therefore, the Company recognized no impairment for the three and six months ended June 30, 2023 and 2022 . |
Definite Lived Intangible Assets, net | Definite Lived Intangible Assets, net Definite lived intangible assets are valued at cost, net of accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives for amortization purposes range between 3 and 10 years. Amortization expense is allocated to general and administrative expense. For the three and six months ended June 30, 2023, amortization expenses were $ 51,722 and $ 103,444 , respectively. For the three and six months ended June 30, 2022, amortization expenses were $ 103,741 and $ 245,223 , respectively. The Company assesses qualitative factors each reporting period to determine whether events and circumstances exist that indicate that the fair values of the definite liv ed intangible assets were less than the carrying amounts. There were no impairment charges in the three and six months ended June 30, 2023 . In the last month of the first quarter of 2022, management determined the sustained decline in stock price, coupled with changes in market conditions, was a triggering event. Upon considering these factors, the Company determined it was more likely than not that the fair value was less than the carrying amounts of long-lived intangible assets; therefore, the Company recognized impairment charges of $ 0 and $ 1,540,000 for the three and six months ended June 30, 2022 , respectively. See Note 5 for more information. |
Goodwill | Goodwill Goodwill represents the excess of purchase price over the assigned fair values of the assets acquired and liabilities assumed in conjunction with a business combination. Goodwill is reviewed for impairment annually as of December 31, or whenever events occur or circumstances change that indicate goodwill may be impaired. In testing goodwill for impairment, the Company has the option to perform a qualitative assessment to determine whether the existence of events or circumstances indicate that it is more-likely-than-not (more than 50 %) that the fair value of goodwill is less than its carrying amount. When performing a qualitative assessment, the Company evaluates factors such as industry and market conditions, cost factors, overall financial performance, and other relevant entity specific events and changes. If the qualitative assessment indicates that it is more-likely-than-not that the fair value of goodwill is less than its carrying amount, or if the Company chooses not to perform the qualitative assessment, then a quantitative assessment is performed to determine the reporting unit’s fair value. If the carrying value exceeds its fair value, then an impairment loss is recognized for the amount of the excess of the carrying amount over the fair value, not to exceed the total amount of goodwill. In the last month of the first quarter, management had determined the sustained decline in stock price, coupled with a change in market conditions, was determined to be a triggering event. The Company performed a qualitative and quantitative analysis on the Company's goodwill for impairment concluding that the fair value of goodwill as calculated using a discounted cash flow model exceeds the carrying value, indicating that goodwill was impaired. The Company recorded goodwill impairment charges of $ 0 and $ 6,486,000 , respectively, during the three and six months ended June 30, 2022 . There was no goodwill as of June 30, 2023 or December 31, 2022. |
Employee Benefit Plan | Employee Benefit Plan The Company sponsors a defined contribution 401(k) plan (the “401(k) plan”) for all employees 18 years or older. The 401(k) plan was initiated on July 1, 2018. Employee contributions may be made on a before-tax basis, limited by Internal Revenue Service regulations. For the three and six months ended June 30, 2023 and 2022 , the Company did no t match employee contributions. |
JOBS Act Accounting Election | JOBS Act Accounting Election The Company qualifies as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. An emerging growth company can elect to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. Currently, the Company has elected to file as an emerging growth company defined under the JOBS Act, and as such, these unaudited consolidated condensed financial statements may not be comparable to the financial statements of companies that comply with the new or revised accounting pronouncements as of public company effective dates. Exit and Disposal Costs The Company follows the guidance in ASC 420, Exit or Disposal Cost Obligations , to record exit and disposal related costs. The Company recorded $ 8.7 million of exit and disposal costs in the fourth quarter of 2022 and insignificant residual costs in the six months ended June 30, 2023, associated with the closure of the Sisters, Oregon manufacturing sites and subsequent transition to a co-manufacturing model for all production and fulfillment. ASC 420 requires the recognition of costs associated with exit or disposal activities when they are incurred, generally the cease-use date. Exit and disposal activities are summarized below: • We entered into a lease termination agreement on December 12, 2022. All production activities taking place in the related properties ceased in December 2022. Pursuant to this agreement, our lease was fully terminated as of January 31, 2023, and we owed a total of $ 1.6 million in early lease termination costs of which $ 0.5 million was remitted in December 2022 and $ 1.1 million was satisfied in January 2023. We recognized lease termination costs, including the elimination of right of use assets net of lease liabilities, and early lease termination penalties, of $ 3.6 million which are included in General and Administrative Expenses for the year ended December 31, 2022. • We signed an asset purchase agreement with our new co-manufacturer for the sale of the majority of our production equipment for a purchase price of $ 0.8 million and an agreement to sell certain leasehold improvements for $ 0.1 million. Certain equipment, furniture, and leasehold improvements were abandoned upon exit of the lease. The net book value of this property exceeds the recoverability of the assets. As such, we recorded impairment charges of property, plant, and equipment and internal-use production software of $ 3.1 million and $ 0.1 million, respectively, which are included in General and Administrative Expenses for the year ended December 31, 2022. Consideration was received in the amount of $ 0.3 million in the first half of 2023 and consideration receivable of $ 0.5 million is included in Prepaid and other current assets on the unaudited consolidated condensed balance sheets as of June 30, 2023. • We incurred one-time termination benefits consisting of severances primarily for operations, production, and fulfillment personnel, of $ 0.6 million, which are included in General and Administrative Expenses for the year ended December 31, 2022. These were paid by January 2023. In the first quarter of 2023, we recognized a net reversal of expense of $ 0.1 million related to severances and forfeitures of stock-based compensation, which are included in General and Administrative Expenses. • We moved the majority of our raw materials inventory to our co-manufacturer and the majority of our finished goods inventory to our third-party logistics partners. Because we no longer have storage space in our warehouses, we determined that it was not cost-effective to pay for freight and storage fees to move and house certain inventories at our third-party partners' facilities. As a result, we disposed of, or reserved for disposal, certain inventories remaining at the Sisters, Oregon facilities which were not shipped to our third-party partners' facilities, in the amount of $ 1.1 million, which are included in Costs of Goods Sold for the year ended December 31, 2022. All such inventory remaining on-hand as of December 31, 2022 was disposed of in January 2023. • We incurred other costs for moving inventory, IT setup and integration costs, repayment of property tax abatements, and other costs totaling $ 0.2 million, which were included in General and Administrative Expenses for the year ended December 31, 2022. We recognize these costs as incurred or when they become realizable. Loss Contingencie s We may be subject to contingencies arising in the ordinary course of business, such as product liability and other product-related litigation, commercial litigation, environmental claims and proceedings, government investigations and guarantees and indemnifications. In assessing contingencies related to legal and environmental proceedings that are pending against the Company, or unasserted claims that are probable of being asserted, we record accruals for these contingencies to the extent that we conclude that a loss is both probable and reasonably estimable. If an amount within a range of loss appears to be a better estimate than any other amount within the range, we accrue that amount. Alternatively, when no amount within a range of loss appears to be a better estimate than any other amount, we accrue the lowest amount in the range. We record anticipated recoveries under existing insurance contracts when recovery is assured. As of June 30, 2023, $ 0.1 million of loss contingencies are included in accrued expenses. These relate to an ongoing class action lawsuit related to product labeling as a result of our failure to prevail on a motion to dismiss the matter. Contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. This contingency could result in increased expenses and/or losses, including damages, fines and/or civil penalties, and/or plaintiff legal fees, which could be substantial. We believe that our claims and defenses in this matter are substantial, but litigation is inherently unpredictable and excessive verdicts do occur. We do not believe that these matters will have a material adverse effect on our financial position. However, we could incur judgments, enter into settlements or revise our expectations regarding the outcome of matters, which could have a material adverse effect on our results of operations and/or our cash flows in the period in which the amounts are accrued or paid. Our assessments, which result from a complex series of judgments about future events and uncertainties, are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. |
Going Concern | Going Concern The unaudited consolidated condensed financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the unaudited consolidated condensed financial statements, the Company has $ 10.6 million of cash and cash equivalents, and cash used in operations was $ 7.5 million in the six months ended June 30, 2023. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Absent any other action, the Company will require additional liquidity to continue its operations over the next 12 months from the date of this Quarterly Report on Form 10-Q. The Company’s cash position may not be sufficient to support its daily operations. While the Company believes in the viability of its strategy to further implement its business plan and generate sufficient revenue and in its ability to raise additional funds by way of a public or private offering, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon its ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. At the end of the fourth quarter of 2022, the Company transitioned to a variable cost third-party co-manufacturing business model. As part of this transition, the Company greatly reduced overhead costs while simultaneously improving margins. Cash used in operations in the first half of 2023 is inclusive of costs which were incurred in connection with the exit and disposal activities, annual bonus payments, discounts for replacement orders, as well as out of stock items following a product quality issue which resulted in reduced top line revenue for the impacted SKUs in the quarter. These factors exacerbate the cash used in the first half of the year. Even with a product quality issue impacting net sales and costs of goods sold we have already realized margin improvements to 23.7 % in the first half of 2023 compared to 14.5 % for fiscal year 2022. Management has specific plans to further improve gross margins, optimize marketing spend, and cut selling, general, and administrative costs later in the year which management believes will significantly reduce expected future cash outlays. The unaudited consolidated condensed financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments – Credit Losses (“Topic 326”): Measurement of Credit Losses on Financial Instruments ,” as modified by subsequently issued ASUs 2018-19 (issued November 2018), 2019-04 (issued April 2019), 2019-05 (issued May 2019), 2019-11 (issued November 2019), 2020-02 (issued February 2020) and 2020-03 (issued March 2020). Topic 326 modifies the measurement and recognition of credit losses for most financial assets and certain other instruments, requiring the use of forward-looking expected credit loss models based on historical experience, current economic conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount, which may result in earlier recognition of credit losses under the new standard. It also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the current, other-than-temporary-impairment model. The standard requires a modified retrospective approach with a cumulative effect adjustment to retained earnings. ASU 2016-13 is effective for the Company’s annual periods beginning after December 15, 2022, including interim periods within those fiscal years. We adopted ASU 2016-13 in the first quarter of 2023. The adoption had no impact on our unaudited consolidated condensed financial position, results of operations, or cash flows. |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before the unaudited consolidated condensed financial statements are available to be issued. The Company has evaluated events and transactions subsequent to June 30, 2023 for potential recognition of disclosure in the unaudited consolidated condensed financial statements. There were no such subsequent events. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the balance sheet. June 30, December 31, Cash and cash equivalents $ 10,476,770 $ 17,710,277 Restricted cash 99,525 99,525 Total cash, cash equivalents, and restricted cash $ 10,576,295 $ 17,809,802 |
Schedule of Inventory, Current | The following table presents the components of inventory, net of reserves, as of: June 30, December 31, Raw materials and packaging $ 2,674,183 $ 3,764,804 Finished goods 3,183,102 1,931,761 Total inventory, net $ 5,857,285 $ 5,696,565 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of prepaid expenses and other current assets | The following table presents the components of prepaid expenses and other current assets, as of: June 30, December 31, Prepaid insurance $ 256,966 $ 761,147 Prepaid inventory 262,251 897,108 Prepaid subscriptions and license fees 319,393 292,622 Prepaid advertising 117,317 166,872 Deposits 185,223 134,896 Other current assets 510,567 277,430 Prepaid and other current assets $ 1,651,717 $ 2,530,075 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment, net | Property and equipment, net is comprised of the following as of: June 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Depreciation Net Carrying Amount Gross Carrying Amount Accumulated Depreciation Net Carrying Amount Factory equipment $ — $ — $ — $ 66,276 $ ( 43,051 ) $ 23,225 Furniture and office equipment 216,975 ( 89,982 ) 126,993 318,795 ( 211,529 ) 107,266 Leasehold improvements 46,276 ( 18,109 ) 28,167 34,946 ( 15,148 ) 19,798 $ 263,251 $ ( 108,091 ) $ 155,160 $ 420,017 $ ( 269,728 ) $ 150,289 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible Assets, net is comprised of the following: June 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade names ( 10 years) $ 890,827 $ ( 53,450 ) $ 837,377 $ 890,827 $ — $ 890,827 Recipes ( 10 years) 330,000 ( 71,500 ) 258,500 330,000 ( 55,000 ) 275,000 Social media agreements ( 3 years) 80,000 ( 57,778 ) 22,222 80,000 ( 44,444 ) 35,556 Software ( 3 years) 131,709 ( 61,134 ) 70,575 131,710 ( 40,975 ) 90,735 Definite-lived intangible assets 1,432,536 ( 243,862 ) 1,188,674 1,432,537 ( 140,419 ) 1,292,118 Licensing agreements (indefinite) 132,100 — 132,100 132,100 — 132,100 Total intangible assets $ 1,564,636 $ ( 243,862 ) $ 1,320,774 $ 1,564,637 $ ( 140,419 ) $ 1,424,218 |
Summary of Future Amortization Expense of the Intangible Assets | The estimated amortization expense for each of the next five years and thereafter is as follows: 2023 (excluding the six months ended June 30, 2023) $ 106,855 2024 195,931 2025 156,818 2026 146,723 2027 146,723 Thereafter 435,624 $ 1,188,674 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Summary of the components of lease expense | The components of lease expense were as follows: Three Months Ended Six Months Ended Operating leases Operating lease cost $ 38,085 $ 76,169 Variable lease cost 5,554 18,468 Operating lease expense 43,639 94,637 Short-term lease rent expense 56,960 173,187 Total rent expense $ 100,599 $ 267,824 Three Months Ended Six Months Ended Operating leases Operating lease cost $ 267,106 $ 534,213 Variable lease cost 27,635 80,638 Operating lease expense 294,741 614,851 Short-term lease rent expense 68,957 103,498 Total rent expense $ 363,698 $ 718,349 Six Months Ended Six Months Ended Operating cash flows - operating leases $ 62,923 $ 370,214 Right-of-use assets obtained in exchange for operating lease liabilities $ 344,382 $ 5,285,330 June 30, 2023 June 30, 2022 Weighted-average remaining lease term – operating leases (in years) 3.5 8.3 Weighted-average discount rate – operating leases 6.56 % 3.75 % |
Summary of future minimum payments during the next five years and thereafter | As of June 30, 2023, future minimum payments during the next five years and thereafter are as follows: 2023 (excluding the six months ended June 30, 2023) $ 63,509 2024 138,800 2025 126,715 2026 109,145 2027 56,210 Total 494,379 Less imputed interest ( 61,963 ) Operating lease liabilities $ 432,416 |
Summary of operating rental income | The components of rental income were as follows: Three Months Ended Six Months Ended Operating leases Operating lease income $ 14,055 $ 28,110 Variable lease income 5,318 10,635 Total rental income $ 19,373 $ 38,745 |
Summary of future minimum payments received | As of June 30, 2023, future minimum payments to be received during the next five years and thereafter are as follows: 2023 (excluding the six months ended June 30, 2023) 30,216 2024 61,640 2025 20,748 Total $ 112,604 |
Deferred Tax Assets and Liabi_2
Deferred Tax Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule Reconciliation of Statutory Income Tax Rate to Consolidated Effective Income Tax rate | A reconciliation of income tax expense at the federal statutory rate to the income tax provision at the Company's effective rate is as follows: Six Months Ended June 30, 2023 June 30, 2022 Income tax benefit at statutory rates $ 1,604,134 $ 2,968,062 Valuation allowance for deferred tax assets ( 1,625,391 ) ( 2,947,086 ) Stock-based compensation ( 17,634 ) ( 12,642 ) Other benefit, net 25,719 ( 14,108 ) Reported income tax expense $ ( 13,172 ) $ ( 5,774 ) Effective tax rate: 0.2 % 0.0 % |
Schedule of Deferred Tax Assets and Liabilities | The Company’s deferred tax assets consisted of the following as of: June 30, 2023 December 31, 2022 Noncurrent deferred tax assets: Net operating loss carryforwards $ 19,201,198 $ 17,428,266 Intangible assets 2,163,563 2,382,397 Property and equipment 1,554,492 1,660,954 Research and development credits 348,427 300,105 Accrued expenses 866,024 766,385 Right of use asset 3,993 524 Bad debt allowance 33,736 20,282 Charitable contributions 40,782 38,557 Unexercised options 1,235,230 1,136,475 Capitalized research and development costs 242,052 194,320 Total noncurrent deferred tax assets 25,689,497 23,928,265 Valuation allowance ( 25,689,497 ) ( 23,928,265 ) Total net deferred tax assets $ — $ — |
Stock Incentive Plan (Tables)
Stock Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | he grant-date fair value of stock options was estimated at the time of grant using the following weighted-average inputs and assumptions in the Black-Scholes option pricing model: Six Months Ended 2023 2022 Weighted-average expected volatility 57.96 % 52.36 % Weighted-average expected term (years) 6.25 6.25 Weighted-average expected risk-free interest rate 3.50 % 2.27 % Dividend yield — — Weighted-average fair value of options granted $ 0.55 $ 2.79 |
Schedule of Share-Based Compensation | Stock -based compensation expense is recognized ratably over the requisite service period for all awards. The following tables summarize the Company’s stock-based compensation recorded as a result of applying the provisions of ASC 718 to equity awards: Three months ended Six months ended Unrecognized compensation cost related to non-vested awards as of June 30, 2023 Weighted-average remaining vesting period as of June 30, 2023 (years) Stock options $ 100,196 $ 161,684 $ 1,090,875 2.91 RSUs 195,915 354,630 23,651 2.74 MSUs 9,965 ( 62,603 ) 1,777,578 0.59 Total stock-based compensation $ 306,076 $ 453,711 $ 2,892,104 2.79 Cost of goods sold $ 780 $ ( 116 ) $ 6,120 1.99 General and administrative 286,682 421,924 2,632,234 2.73 Sales and marketing 18,614 31,903 253,750 3.43 Total stock-based compensation $ 306,076 $ 453,711 $ 2,892,104 2.79 Three months ended Six months ended Unrecognized compensation cost related to non-vested awards as of December 31, 2022 Weighted-average remaining vesting period as of December 31, 2022 (years) Stock options $ 80,408 $ 186,857 $ 1,173,758 3.24 RSUs 377,538 740,876 1,707,145 2.91 MSUs ( 668,782 ) ( 1,133,244 ) 71,059 1.09 ESPP 1,594 7,065 — — Total stock-based compensation $ ( 209,242 ) $ ( 198,446 ) $ 2,951,962 3.07 Cost of goods sold $ 10,086 $ 25,506 $ 14,354 2.56 General and administrative ( 259,475 ) ( 313,969 ) 2,734,728 2.93 Research and product development 2,298 ( 6,067 ) 2,517 0.73 Sales and marketing 37,849 96,084 200,363 3.84 Total stock-based compensation $ ( 209,242 ) $ ( 198,446 ) $ 2,951,962 3.07 There were forfeitures of MSU awards of certain members of executive leadership of $ 0 and $ 149,735 for the three and six months ended June 30, 2023 , and of $ 901,801 and $ 1,785,125 d |
Stock Option | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Stock Plan Activity | The following tables summarize the Company’s stock option activ ity: Options Weighted Average Weighted Average Aggregate Balance at January 1, 2023 921,657 $ 6.86 8.00 $ — Granted 400,000 $ 0.81 Exercised/released — $ — Cancelled/forfeited ( 24,164 ) $ 9.99 Balance at June 30, 2023 1,297,493 $ 4.94 7.74 $ — Exercisable at June 30, 2023 318,041 $ 8.72 5.18 $ — Options Weighted Average Weighted Average Aggregate Balance at January 1, 2022 747,800 $ 11.51 6.57 $ 1,143,013 Granted 453,498 $ 7.21 Exercised/released ( 76,750 ) $ 2.14 Cancelled/forfeited ( 192,283 ) $ 17.05 Balance at June 30, 2022 932,265 $ 9.02 7.81 $ — Exercisable at June 30, 2022 419,565 $ 9.76 5.82 $ — |
Restricted Stock Units | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Stock Plan Activity | The following tables summarize the Company’s RSU activ ity: Number of RSUs Weighted Average Weighted Average Aggregate Balance at January 1, 2023 504,420 $ 4.22 2.94 $ 2,127,734 Granted 645,000 $ — Exercised/released ( 141,361 ) $ 4.25 Cancelled/forfeited ( 16,293 ) $ 6.00 Balance at June 30, 2023 991,766 $ 1.99 2.86 $ 1,968,741 Number of RSUs Weighted Average Weighted Average Aggregate Balance at January 1, 2022 90,630 $ 32.91 2.17 $ 2,982,931 Granted 445,702 $ 4.74 Exercised/released ( 19,061 ) $ 26.92 Cancelled/forfeited ( 27,037 ) $ 31.01 Balance at June 30, 2022 490,234 $ 7.64 3.26 $ 3,747,835 |
Market-Based Stock Units | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Stock Plan Activity | The following tables summarize the Company’s market-based stock unit ("MSU") activ ity: Number of MSUs Weighted Average Weighted Average Aggregate Balance at January 1, 2023 31,083 $ 43.53 0.60 $ 1,353,043 Granted — $ — Exercised/released — $ — Cancelled/forfeited ( 9,769 ) $ 43.53 Balance at June 30, 2023 21,314 $ 43.53 0.29 $ 927,798 Number of MSUs Weighted Average Weighted Average Aggregate Balance at January 1, 2022 160,301 $ 43.53 1.20 $ 6,977,903 Granted — $ — Exercised/released — $ — Cancelled/forfeited ( 129,218 ) $ 43.53 Balance at June 30, 2022 31,083 $ 43.53 0.87 $ 1,353,043 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The dilutive effect of employee stock options, restricted stock units, and market-based stock units by the Company are calculated using the treasury stock method. Basic earnings per share is reconciled to diluted earnings per share in the following table: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net loss $ ( 3,507,246 ) $ ( 4,904,520 ) $ ( 7,651,156 ) $ ( 19,043,922 ) Weighted average shares outstanding - basic and diluted 9,284,585 9,132,632 9,249,738 9,114,527 Basic and diluted: Net loss per share, basic and diluted $ ( 0.38 ) $ ( 0.54 ) $ ( 0.83 ) $ ( 2.09 ) Common stock options, restricted stock awards, and market-based stock awards excluded due to anti-dilutive effect 2,310,573 1,453,582 2,310,573 1,453,582 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of disaggregation of revenue based on products sold | In accordance with ASC 606, the Company disaggregates net sales from contracts with customers based on the characteristics of the products sold: Three Months Ended June 30, 2023 2022 $ % of Total $ % of Total Coffee creamers $ 4,636,807 60 % $ 4,694,975 54 % Hydration and beverage enhancing supplements 998,309 13 % 1,296,779 15 % Harvest snacks and other food items 1,845,016 24 % 1,713,441 20 % Coffee, tea, and hot chocolate products 1,973,437 26 % 1,568,142 18 % Other 124,952 2 % 419,390 5 % Gross sales 9,578,521 125 % 9,692,727 112 % Shipping income 259,843 2 % 291,410 3 % Returns and discounts ( 2,114,273 ) ( 27 )% ( 1,310,131 ) ( 15 )% Sales, net $ 7,724,091 100 % $ 8,674,006 100 % Six Months Ended June 30, 2023 2022 $ % of Total $ % of Total Coffee creamers $ 9,754,167 62 % $ 10,149,382 56 % Hydration and beverage enhancing supplements 1,669,159 11 % 2,754,210 15 % Harvest snacks and other food items 3,598,042 23 % 3,400,232 19 % Coffee, tea, and hot chocolate products 3,942,732 25 % 3,384,327 19 % Other 154,681 1 % 657,713 4 % Gross sales 19,118,781 122 % 20,345,864 113 % Shipping income 563,069 2 % 539,602 3 % Returns and discounts ( 3,844,821 ) ( 24 )% ( 2,871,447 ) ( 16 )% Sales, net $ 15,837,029 100 % $ 18,014,019 100 % |
Summary of disaggregation of revenue based on channels | The Company generates revenue through two channels: e-commerce and wholesale: Three Months Ended June 30, 2023 2022 $ % of Total $ % of Total E-commerce $ 4,139,373 54 % $ 5,178,819 60 % Wholesale 3,584,718 46 % 3,495,187 40 % Sales, net $ 7,724,091 100 % $ 8,674,006 100 % Six Months Ended June 30, 2023 2022 $ % of Total $ % of Total E-commerce $ 8,567,054 54 % $ 10,602,770 59 % Wholesale 7,269,975 46 % 7,411,249 41 % Sales, net $ 15,837,029 100 % $ 18,014,019 100 % |
Schedule of receivables from contracts with customers, contract assets, and contract liabilities | The balances of receivables from contracts with customers, contract assets, and contract liabilities were as follow: January 1, December 31, June 30, Accounts receivable, net $ 1,268,718 $ 1,494,469 $ 1,814,461 Contract assets $ 8,316 $ 57,249 $ 101,220 Contract liabilities $ ( 200,914 ) $ ( 443,227 ) $ ( 348,121 ) |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 10,476,770 | $ 17,710,277 | ||
Restricted cash | 99,525 | 99,525 | ||
Total cash, cash equivalents, and restricted cash | $ 10,576,295 | $ 17,809,802 | $ 24,544,116 | $ 23,049,234 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Schedule of Inventory, Current (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials and packaging | $ 2,674,183 | $ 3,764,804 |
Finished goods | 3,183,102 | 1,931,761 |
Total inventory | $ 5,857,285 | $ 5,696,565 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Oct. 12, 2022 | Jan. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 03, 2020 | |
Common stock par or stated value per share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Cash with financial institutions in excess of federally insured limits | $ 462,616 | $ 2,747,721 | $ 462,616 | $ 2,747,721 | ||||||||
Allowance for doubtful accounts | 128,799 | 77,436 | 128,799 | 77,436 | ||||||||
Prepayments for future raw materials | 262,251 | 897,108 | 262,251 | 897,108 | ||||||||
Depreciation | 23,857 | $ 186,319 | 60,088 | $ 329,138 | ||||||||
Goodwill | 0 | 0 | 0 | 0 | ||||||||
Shipping and handling costs | 5,848,023 | 7,096,068 | 12,087,085 | 14,486,271 | ||||||||
Research and development expenses | 82,324 | 116,467 | 166,190 | 220,300 | ||||||||
Advertising expenses | 1,155,789 | 1,567,465 | 2,316,997 | 3,359,202 | ||||||||
Deferred tax asset valuation allowance | 25,689,497 | 23,928,265 | 25,689,497 | 23,928,265 | ||||||||
Impairment of goodwill and long-lived assets | 0 | 6,486,000 | ||||||||||
Employees matching contribution defined contribution plan | 0 | 0 | 0 | 0 | ||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 7,724,091 | 8,674,006 | 15,837,029 | 18,014,019 | ||||||||
Cash Uninsured Amount | 462,616 | 2,747,721 | 462,616 | 2,747,721 | ||||||||
Marketing Expense | 892,776 | 1,096,025 | 1,785,564 | 2,158,670 | ||||||||
Amortization expense of finite lived intangible assets | 51,722 | 103,741 | 103,444 | 245,223 | ||||||||
Impairment loss | 100,426 | |||||||||||
Impairment Charges | $ 3,240 | 573,818 | ||||||||||
Cash equivalents pledged to secure revolving line of credit | 6,325,000 | 6,325,000 | ||||||||||
Accrued loss contingencies amount | 100,000 | |||||||||||
Exit and disposal related costs | 8,700,000 | |||||||||||
Lease termination cost | $ 1,600,000 | |||||||||||
Asset aggrement purchase price | $ 800,000 | |||||||||||
Assets Held-for-sale Fair Value | 0 | 800,000 | 0 | 800,000 | ||||||||
Sell certain leasehold improvements | 100,000 | 100,000 | ||||||||||
Cost of Goods and Services Sold | 5,848,023 | 7,096,068 | 12,087,085 | 14,486,271 | ||||||||
Consideration Received In sale Of Asset | 300,000 | 300,000 | ||||||||||
Cash and cash equivalents | 10,476,770 | 17,710,277 | 10,476,770 | 17,710,277 | ||||||||
Cash, cash equivalents, and restricted cash | 10,576,295 | 17,809,802 | 24,544,116 | 10,576,295 | 24,544,116 | $ 17,809,802 | $ 23,049,234 | |||||
Cash used in operations | 7,500,000 | |||||||||||
Operating loss | (3,655,605) | (4,927,056) | $ (7,958,087) | (18,881,363) | ||||||||
Margin Improvements Percentage | 23.70% | 14.50% | ||||||||||
Inventory reserves | 1,387,894 | 1,545,033 | $ 1,387,894 | $ 1,545,033 | ||||||||
Discontinued invetories related to disposal | 341,744 | 239,025 | 341,744 | 239,025 | ||||||||
Disposal Group Not Discontinued Operations [Member] | ||||||||||||
Inventory reserves | 552,909 | 559,042 | 552,909 | 559,042 | ||||||||
Finite-Lived Intangible Assets [Member] | ||||||||||||
Impairment Charges | 0 | 0 | 0 | 1,540,000 | ||||||||
General and Administrative Expense [Member] | ||||||||||||
Shipping and handling costs | 1,100,000 | |||||||||||
Exit and disposal related costs | 100,000 | 3,600,000 | ||||||||||
Impairment charges of property, plant, and equipment | 3,100,000 | 100,000 | ||||||||||
Cost of Goods and Services Sold | 1,100,000 | |||||||||||
Severance Costs | 600,000 | |||||||||||
Further Transition Costs | 200,000 | |||||||||||
Prepaid Expenses and Other Current Assets [Member] | ||||||||||||
NotesReceivableRelatedParties | 500,000 | |||||||||||
Raw Materials [Member] | ||||||||||||
Prepayments for future raw materials | 262,251 | 897,108 | 262,251 | 897,108 | ||||||||
Inventory reserves | 493,331 | 746,966 | 493,331 | 746,966 | ||||||||
Inventory Valuation and Obsolescence [Member] | ||||||||||||
Inventory obsolescence | 262,718 | 135,645 | 627,742 | 40,075 | ||||||||
Dano Manifesto Ventures PBC [Member] | COVID-19 | ||||||||||||
Cash, cash equivalents, and restricted cash | $ 298,103 | |||||||||||
Decrease In Restricted Cash | $ 0 | 10,068 | 0 | 14,839 | ||||||||
RII Lundgrens Mill LLC [Member] | ||||||||||||
Exit and disposal related costs | $ 1,100,000 | 500,000 | ||||||||||
License Agreement Terms [Member] | Laird Hamilton [Member] | ||||||||||||
Licensing agreements (indefinite) Net Carrying Amount | 132,000 | 132,000 | $ 132,000 | 132,000 | ||||||||
Stock issued during the period shares for services received | 660,000 | |||||||||||
License Agreement Terms [Member] | Gabrielle Reece [Member] | ||||||||||||
Licensing agreements (indefinite) Net Carrying Amount | 100 | $ 100 | $ 100 | $ 100 | ||||||||
License And Preservation Agreement [Member] | Laird Hamilton and Gabrielle Riece [Member] | ||||||||||||
Term of the license agreement | 100 years | |||||||||||
License and Preservation Amendment Agreement [Member] | Laird Hamilton and Gabrielle Riece [Member] | ||||||||||||
Additional term of the license agreement | 10 years | |||||||||||
Impairment Charges | 0 | 0 | $ 0 | 0 | ||||||||
Shipping and Handling [Member] | ||||||||||||
Shipping and handling costs | 1,294,999 | 1,602,342 | 2,869,314 | 3,141,555 | ||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 259,843 | 291,410 | 563,069 | 539,602 | ||||||||
Cost of Goods and Services Sold | $ 1,294,999 | $ 1,602,342 | $ 2,869,314 | $ 3,141,555 | ||||||||
Maximum [Member] | ||||||||||||
Estimated useful lives of finite lived intangible assets | 10 years | 10 years | ||||||||||
Maximum [Member] | Finite-Lived Intangible Assets [Member] | ||||||||||||
Estimated useful life of furniture | 10 years | 10 years | ||||||||||
Maximum [Member] | License and Preservation Amendment Agreement [Member] | Laird Hamilton and Gabrielle Riece [Member] | ||||||||||||
Additional term of the license agreement | 100 years | |||||||||||
Minimum [Member] | ||||||||||||
Estimated useful lives of finite lived intangible assets | 3 years | 3 years | ||||||||||
Percentage of Existence of events or circustances to perform qualitative assessment | 50% | |||||||||||
Minimum [Member] | Finite-Lived Intangible Assets [Member] | ||||||||||||
Estimated useful life of furniture | 3 years | 3 years | ||||||||||
Equipment [Member] | Maximum [Member] | ||||||||||||
Estimated useful life of furniture | 7 years | 7 years | ||||||||||
Equipment [Member] | Minimum [Member] | ||||||||||||
Estimated useful life of furniture | 3 years | 3 years |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid insurance | $ 256,966 | $ 761,147 |
Prepaid inventory | 262,251 | 897,108 |
Prepaid subscriptions and license fees | 319,393 | 292,622 |
Prepaid, other | 185,223 | 134,896 |
Prepaid advertising | 117,317 | 166,872 |
Other current assets | 510,567 | 277,430 |
Prepaid and other current assets | $ 1,651,717 | $ 2,530,075 |
Revolving Lines of Credit - Add
Revolving Lines of Credit - Additional Information (Detail) - USD ($) | 6 Months Ended | |||
Sep. 02, 2021 | Jun. 30, 2023 | Dec. 31, 2022 | Aug. 10, 2017 | |
Wells Fargo Bank [Member] | Secured Overnight Financing Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument variable interest rate spread | 1.50% | |||
Wells Fargo Bank [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility interest rate description | Simple Secured Overnight Financing Rate (“SOFR”) plus 1.5% per annum | |||
Line of credit facility maturity date | Aug. 31, 2023 | |||
Line of credit | $ 0 | $ 0 | ||
Wells Fargo Bank [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 9,500,000 | |||
Wells Fargo Bank [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 5,000,000 | |||
East Asset Management LLC [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Percentage of equity offerings eligible to be subscribed for by the lender | 20% | |||
East Asset Management LLC [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility maturity date | Aug. 10, 2022 | |||
Line of credit interest rate in the event of default | 15% | |||
East Asset Management LLC [Member] | Revolving Credit Facility [Member] | Interest Rate In The Event Of Default [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit interest rate in the event of default | 20% | |||
East Asset Management LLC [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 3,000,000 | |||
East Asset Management LLC [Member] | Secondary Line Of Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 200,000 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 263,251 | $ 420,017 |
Accumulated depreciation | (108,091) | (269,728) |
Property and equipment, net | 155,160 | 150,289 |
Factory equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 0 | 66,276 |
Accumulated depreciation | 0 | (43,051) |
Property and equipment, net | 0 | 23,225 |
Furniture and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 216,975 | 318,795 |
Accumulated depreciation | (89,982) | (211,529) |
Property and equipment, net | 126,993 | 107,266 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 46,276 | 34,946 |
Accumulated depreciation | (18,109) | (15,148) |
Property and equipment, net | $ 28,167 | $ 19,798 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Depreciation | $ 23,857 | $ 186,319 | $ 60,088 | $ 329,138 | ||||
Proceeds from sale of property held-for-sale | $ 103,240 | $ 1,572,512 | ||||||
Impairment Charges | $ 3,240 | 573,818 | ||||||
Impairment of Real Estate | 100,426 | |||||||
Purchase Agreement [Memebr] | ||||||||
Impairment Charges | $ 3,105,435 | |||||||
Assets held-for-sale price | $ 800,000 | |||||||
Consideration received in cash | $ 349,649 | |||||||
Consideration cash receivable | $ 450,351 | $ 450,351 | ||||||
Real Estate [Member] | ||||||||
Assets held-for-sale price | $ 100,000 | $ 100,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Summary of Intangible Assets (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,432,536 | $ 1,432,537 |
Accumulated amortization | (243,862) | (140,419) |
Intangible assets, net | 1,188,674 | 1,292,118 |
Total intangible assets, gross | 1,564,636 | 1,564,637 |
Total Intangible assets, net | 1,320,774 | 1,424,218 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 890,827 | 890,827 |
Accumulated amortization | (53,450) | |
Intangible assets, net | 837,377 | 890,827 |
Recipes [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 330,000 | 330,000 |
Accumulated amortization | (71,500) | (55,000) |
Intangible assets, net | 258,500 | 275,000 |
Social Media Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 80,000 | 80,000 |
Accumulated amortization | (57,778) | (44,444) |
Intangible assets, net | 22,222 | 35,556 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 131,709 | 131,710 |
Accumulated amortization | (61,134) | (40,975) |
Intangible assets, net | 70,575 | 90,735 |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Licensing agreement - intangible | $ 132,100 | $ 132,100 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Summary of Intangible Assets (Parenthetical) (Detail) | Jun. 30, 2023 |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of finite lived intangible assets | 10 years |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of finite lived intangible assets | 3 years |
Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of finite lived intangible assets | 10 years |
Recipes [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of finite lived intangible assets | 10 years |
Social Media Agreements [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of finite lived intangible assets | 3 years |
Software [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of finite lived intangible assets | 3 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Summary of Future Amortization Expense of the Intangible Assets (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2023 (excluding the three months ended June 30, 2023) | $ 106,855 | |
2024 | 195,931 | |
2025 | 156,818 | |
2026 | 146,723 | |
2027 | 146,723 | |
Thereafter | 435,624 | |
Intangible assets, net | $ 1,188,674 | $ 1,292,118 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Line Items] | |||||
Goodwill | $ 0 | $ 0 | $ 0 | ||
Impairment of goodwill and long-lived assets | $ 0 | $ 6,486,000 | |||
Total intangible assets,Accumulated Amortization | 51,722 | $ 103,741 | $ 103,444 | $ 245,223 | |
Finite-Lived Intangible Assets, Amortization Method | straight-line method | ||||
Multiperiod Excess Earnings Method variation | |||||
Goodwill [Line Items] | |||||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | General and Administrative Expense | General and Administrative Expense | |||
Long-lived intangible assets, not assets held for sale | 344,006 | $ 0 | $ 1,432,000 | ||
Relief From Royalty Method variation | |||||
Goodwill [Line Items] | |||||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | General and Administrative Expense | General and Administrative Expense | |||
Long-lived intangible assets, not assets held for sale | $ 1,135,000 | $ 0 | $ 108,000 | ||
Picky Bars [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 6,486,000 | $ 6,486,000 | |||
Minimum [Member] | |||||
Goodwill [Line Items] | |||||
Useful Life | 3 years | 3 years | |||
Maximum [Member] | |||||
Goodwill [Line Items] | |||||
Useful Life | 10 years | 10 years | |||
Weighted Average [Member] | |||||
Goodwill [Line Items] | |||||
Useful Life | 7 years 3 months 18 days | 7 years 3 months 18 days |
Leases (Additional Information)
Leases (Additional Information) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Oct. 01, 2021 USD ($) | May 03, 2021 USD ($) | Jul. 01, 2019 USD ($) | Mar. 01, 2018 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) ft² | Dec. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | |||||||
Lease cancelation agreement payment | $ 1,550,000 | ||||||
Loss on lease termination | 3,596,365 | ||||||
RII Lundgren Mill LLC [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lease termination penalties | $ 1,050,000 | 500,000 | |||||
RII Lundgren Mill LLC [Member] | Commercial lease agreement [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating Lease Payments | $ 38,869 | $ 12,784 | $ 6,475 | ||||
Percentage increase in lease payments | 3% | 3% | 3% | ||||
Picky Bars, LLC [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Percentage increase in lease payments | 3% | ||||||
Lease Expiration Date | Apr. 30, 2025 | ||||||
Sublease rental assets | $ 15,657 | $ 18,846 | |||||
Sublease Income | $ 4,889 | ||||||
Picky Bars, LLC [Member] | Commercial lease agreement [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating Lease Payments | $ 4,609 | ||||||
Percentage increase in lease payments | 3% | ||||||
Lease term | 62 months | ||||||
Somatic Experiencing Trauma Institute [Member] | Sublease Agreement [Member] | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Percentage increase in lease payments | 3% | ||||||
Lease Expiration Date | Jul. 01, 2027 | ||||||
Sublease Income | $ 99,883 | ||||||
Lease commencement date | Jan. 01, 2023 | ||||||
Area of land | ft² | 5,257 |
Leases - Summary of components
Leases - Summary of components of lease expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Lease, Liability [Abstract] | ||||
Operating lease cost | $ 38,085 | $ 267,106 | $ 76,169 | $ 534,213 |
Variable lease cost | 5,554 | 27,635 | 18,468 | 80,638 |
Operating lease expense | 43,639 | 294,741 | 94,637 | 614,851 |
Short-term lease rent expense | 56,960 | 68,957 | 173,187 | 103,498 |
Total rent expense | $ 100,599 | $ 363,698 | 267,824 | 718,349 |
Operating cash flows - operating leases | 62,923 | 370,214 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 344,382 | $ 5,285,330 | ||
Weighted-average remaining lease term operating leases - (in years) | 3 years 6 months | 8 years 3 months 18 days | 3 years 6 months | 8 years 3 months 18 days |
Weighted-average discount rate - operating leases | 6.56% | 3.75% | 6.56% | 3.75% |
Leases - Summary of future mini
Leases - Summary of future minimum payments during the next five years and thereafter (Details) | Jun. 30, 2023 USD ($) |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | |
2023 (excluding the six months ended June 30, 2023) | $ 63,509 |
2024 | 138,800 |
2025 | 126,715 |
2026 | 109,145 |
2027 | 56,210 |
Total | 494,379 |
Less imputed interest | (61,963) |
Operating lease liabilities | $ 432,416 |
Leases - Summary of operating r
Leases - Summary of operating rental income (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Operating Lease, Lease Income [Abstract] | ||
Operating lease income | $ 14,055 | $ 28,110 |
Variable lease income | 5,318 | 10,635 |
Total rental income | $ 19,373 | $ 38,745 |
Leases - Summary of future mi_2
Leases - Summary of future minimum payments received (Details) | Jun. 30, 2023 USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2023 (excluding the six months ended June 30, 2023) | $ 30,216 |
2024 | 61,640 |
2025 | 20,748 |
Total | $ 112,604 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 02, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Contingency [Line Items] | |||||
Operating lease rent expenses | $ 100,599 | $ 363,698 | $ 267,824 | $ 718,349 | |
Wells Fargo Bank [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Debt instrument variable interest rate spread | 1.50% | ||||
Wells Fargo Bank [Member] | Revolving Credit Facility [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Line of credit facility maturity date | Aug. 31, 2023 | ||||
Line of credit facility interest rate description | Simple Secured Overnight Financing Rate (“SOFR”) plus 1.5% per annum |
Deferred Tax Assets and Liabi_3
Deferred Tax Assets and Liabilities - Schedule Of Effective Income Tax Rate Reconciliation (Details) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit at statutory rates | $ 1,604,134 | $ 2,968,062 | ||
Valuation allowance for deferred tax assets | (1,625,391) | (2,947,086) | ||
Stock-based compensation | (17,634) | (12,642) | ||
Other benefit, net | (25,719) | (14,108) | ||
Reported income tax expense | $ (750) | $ 0 | $ (13,172) | $ (5,774) |
Effective tax rate: | 0.20% | 0% |
Deferred Tax Assets and Liabi_4
Deferred Tax Assets and Liabilities - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Noncurrent deferred tax assets: | ||
Net operating loss carryforwards | $ 19,201,198 | $ 17,428,266 |
Intangible assets | 2,163,563 | 2,382,397 |
Property and equipment | 1,554,492 | 1,660,954 |
Research and development credits | 348,427 | 300,105 |
Accrued expenses | 866,024 | 766,385 |
Right of use asset | 3,993 | 524 |
Bad debt allowance | 33,736 | 20,282 |
Charitable contributions | 40,782 | 38,557 |
Unexercised options | 1,235,230 | 1,136,475 |
Capitalized research and development costs | 242,052 | 194,320 |
Total noncurrent deferred tax assets | 25,689,497 | 23,928,265 |
Valuation allowance | (25,689,497) | (23,928,265) |
Total net deferred tax assets | $ 0 | $ 0 |
Deferred Tax Assets and Liabi_5
Deferred Tax Assets and Liabilities - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Deferred Income Tax Assets And Liabilities [Line Items] | |||
Net increase decrease in the valuation allowance for defered tax assets and liabilities | $ 1,800,000 | $ 4,500,000 | |
Federal net operating losses | 131,300,000 | $ 118,600,000 | |
Deferred state tax | 14,350 | ||
Unrecorded Tax Liabilities | 0 | ||
Credits total | $ 400,000 | 300,000 | |
Maximum [Member] | |||
Deferred Income Tax Assets And Liabilities [Line Items] | |||
Statute Of Limitations Period | 20 years | ||
Minimum [Member] | |||
Deferred Income Tax Assets And Liabilities [Line Items] | |||
Statute Of Limitations Period | 5 years | ||
State and Local Jurisdiction [Member] | |||
Deferred Income Tax Assets And Liabilities [Line Items] | |||
Federal net operating losses | $ 55,000,000 | 49,300,000 | |
State and Local Jurisdiction [Member] | Maximum [Member] | |||
Deferred Income Tax Assets And Liabilities [Line Items] | |||
Statute Of Limitations Period | 20 years | ||
State and Local Jurisdiction [Member] | Minimum [Member] | |||
Deferred Income Tax Assets And Liabilities [Line Items] | |||
Statute Of Limitations Period | 15 years | ||
UsAndStateJurisdictionMember | Maximum [Member] | |||
Deferred Income Tax Assets And Liabilities [Line Items] | |||
Statute Of Limitations Period | 5 years | ||
UsAndStateJurisdictionMember | Minimum [Member] | |||
Deferred Income Tax Assets And Liabilities [Line Items] | |||
Statute Of Limitations Period | 3 years | ||
Tax Year Two Thousand And Thirty Six [Member] | |||
Deferred Income Tax Assets And Liabilities [Line Items] | |||
Federal net operating losses | $ 1,900,000 | $ 1,900,000 | |
Federal net operating losses limitations on usage | 20 years | 20 years | |
Indefinitely [Member] | |||
Deferred Income Tax Assets And Liabilities [Line Items] | |||
Federal net operating losses | $ 74,400,000 | $ 67,500,000 | |
Federal net operating losses limitations on usage | indefinitely | indefinitely |
Stock Incentive Plan - Schedule
Stock Incentive Plan - Schedule of Stock Plan Activity (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Options | ||||
Schedule Of Share Based Compensation Stock Options and Restricted Stock Activity [Line Items] | ||||
Balance at the beginning, Options Activity | 921,657 | 747,800 | 747,800 | |
Granted, Options Activity | 400,000 | 453,498 | ||
Exercised/released, Options Activity | 0 | (76,750) | ||
Cancelled/forfeited, Options Activity | (24,164) | (192,283) | ||
Balance at the end, Options Activity | 1,297,493 | 932,265 | 921,657 | 747,800 |
Exercisable, Options Activity | 318,041 | 419,565 | ||
Balance at the beginning, Weighted Average Exercise Price (per share) | $ 6.86 | $ 11.51 | $ 11.51 | |
Granted, Weighted Average Exercise Price (per share) | 0.81 | 7.21 | ||
Exercised/released, Weighted Average Exercise Price (per share) | 0 | 2.14 | ||
Cancelled/forfeited, Weighted Average Exercise Price (per share) | 9.99 | 17.05 | ||
Balance at the end, Weighted Average Exercise Price (per share) | 4.94 | 9.02 | $ 6.86 | $ 11.51 |
Exercisable, Weighted Average Exercise Price (per share) | $ 8.72 | $ 9.76 | ||
Weighted Average Remaining Contractual Term (years) | 7 years 8 months 26 days | 7 years 9 months 21 days | 8 years | 6 years 6 months 25 days |
Exercisable, Weighted Average Remaining Contractual Term (years) | 5 years 2 months 4 days | 5 years 9 months 25 days | ||
Aggregate intrinsic value | $ 0 | $ 0 | $ 1,143,013 | |
Exercisable, Aggregate intrinsic value | $ 0 | |||
Restricted Stock Units | ||||
Schedule Of Share Based Compensation Stock Options and Restricted Stock Activity [Line Items] | ||||
Balance at the beginning, Options Activity | 504,420 | 90,630 | 90,630 | |
Granted, Options Activity | 645,000 | 445,702 | ||
Exercised/released, Options Activity | (141,361) | (19,061) | ||
Cancelled/forfeited, Options Activity | (16,293) | (27,037) | ||
Balance at the end, Options Activity | 991,766 | 490,234 | 504,420 | 90,630 |
Balance at the beginning, Weighted Average Exercise Price (per share) | $ 4.22 | $ 32.91 | $ 32.91 | |
Granted, Weighted Average Exercise Price (per share) | 0 | 4.74 | ||
Exercised/released, Weighted Average Exercise Price (per share) | 4.25 | 26.92 | ||
Cancelled/forfeited, Weighted Average Exercise Price (per share) | 6 | 31.01 | ||
Balance at the end, Weighted Average Exercise Price (per share) | $ 1.99 | $ 7.64 | $ 4.22 | $ 32.91 |
Weighted Average Remaining Contractual Term (years) | 2 years 10 months 9 days | 3 years 3 months 3 days | 2 years 11 months 8 days | 2 years 2 months 1 day |
Aggregate intrinsic value | $ 1,968,741 | $ 3,747,835 | $ 2,127,734 | $ 2,982,931 |
Market-Based Stock Units | ||||
Schedule Of Share Based Compensation Stock Options and Restricted Stock Activity [Line Items] | ||||
Balance at the beginning, Options Activity | 31,083 | 160,301 | 160,301 | |
Granted, Options Activity | 0 | 0 | ||
Exercised/released, Options Activity | 0 | 0 | ||
Cancelled/forfeited, Options Activity | (9,769) | (129,218) | ||
Balance at the end, Options Activity | 21,314 | 31,083 | 31,083 | 160,301 |
Balance at the beginning, Weighted Average Exercise Price (per share) | $ 43.53 | $ 43.53 | $ 43.53 | |
Granted, Weighted Average Exercise Price (per share) | 0 | 0 | ||
Exercised/released, Weighted Average Exercise Price (per share) | 0 | 0 | ||
Cancelled/forfeited, Weighted Average Exercise Price (per share) | 43.53 | 43.53 | ||
Balance at the end, Weighted Average Exercise Price (per share) | $ 43.53 | $ 43.53 | $ 43.53 | $ 43.53 |
Weighted Average Remaining Contractual Term (years) | 3 months 14 days | 10 months 13 days | 7 months 6 days | 1 year 2 months 12 days |
Aggregate intrinsic value | $ 927,798 | $ 1,353,043 | $ 1,353,043 | $ 6,977,903 |
Stock Incentive Plan - Summary
Stock Incentive Plan - Summary of Assumptions Used in Black-Scholes Option-Pricing Model to Determine Grant-Date Fair Value of Stock Option Granted (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Abstract] | ||
Weighted-average expected volatility | 57.96% | 52.36% |
Weighted-average expected term (years) | 6 years 3 months | 6 years 3 months |
Weighted-average expected risk-free interest rate | 3.50% | 2.27% |
Dividend yield | 0% | 0% |
Weighted-average fair value of options granted | $ 0.55 | $ 2.79 |
Stock Incentive Plan - Schedu_2
Stock Incentive Plan - Schedule of Share-Based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock-based compensation | $ 306,076 | $ (209,242) | $ 453,711 | $ (198,446) | |
Unrecognized compensation cost related to non vest awards | 2,892,104 | $ 2,892,104 | $ 2,951,962 | ||
Weighted-average remaining vesting period | 2 years 9 months 14 days | 3 years 25 days | 3 years 25 days | ||
Stock Options | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock-based compensation | 100,196 | 80,408 | $ 161,684 | $ 186,857 | |
Unrecognized compensation cost related to non vest awards | 1,090,875 | $ 1,090,875 | $ 1,173,758 | ||
Weighted-average remaining vesting period | 2 years 10 months 28 days | 3 years 2 months 26 days | |||
RSUs | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock-based compensation | 195,915 | 377,538 | $ 354,630 | 740,876 | |
Unrecognized compensation cost related to non vest awards | 23,651 | $ 23,651 | $ 1,707,145 | ||
Weighted-average remaining vesting period | 2 years 8 months 26 days | 2 years 10 months 28 days | |||
MSUs | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock-based compensation | 9,965 | (668,782) | $ (62,603) | (1,133,244) | |
Unrecognized compensation cost related to non vest awards | 1,777,578 | $ 1,777,578 | $ 71,059 | ||
Weighted-average remaining vesting period | 7 months 2 days | 1 year 1 month 2 days | |||
ESPP | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock-based compensation | 1,594 | 7,065 | |||
Unrecognized compensation cost related to non vest awards | $ 0 | ||||
Weighted-average remaining vesting period | 0 years | ||||
Cost of goods sold | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock-based compensation | 780 | 10,086 | $ (116) | $ 25,506 | |
Unrecognized compensation cost related to non vest awards | 6,120 | $ 6,120 | $ 14,354 | ||
Weighted-average remaining vesting period | 1 year 11 months 26 days | 2 years 6 months 21 days | |||
General and administrative | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock-based compensation | 286,682 | (259,475) | $ 421,924 | $ (313,969) | |
Unrecognized compensation cost related to non vest awards | 2,632,234 | $ 2,632,234 | 2,734,728 | ||
Weighted-average remaining vesting period | 2 years 8 months 23 days | 2 years 11 months 4 days | |||
Research and product development | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock-based compensation | 2,298 | $ (6,067) | |||
Unrecognized compensation cost related to non vest awards | 2,517 | ||||
Weighted-average remaining vesting period | 8 months 23 days | ||||
Sales and marketing | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock-based compensation | 18,614 | $ 37,849 | $ 31,903 | $ 96,084 | |
Unrecognized compensation cost related to non vest awards | $ 253,750 | $ 253,750 | $ 200,363 | ||
Weighted-average remaining vesting period | 3 years 5 months 4 days | 3 years 10 months 2 days |
Stock Incentive Plan - Addition
Stock Incentive Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
May 01, 2021 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Dividend yield | 0% | 0% | |||||
Shares issued during the period restricted stock awards net of forfeitures,value | $ (14,727) | $ (4,410) | |||||
Stock issued during period, value, employee stock purchase plan | $ 28,287 | ||||||
Market-Based Stock Units | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Stock options granted | 0 | 0 | |||||
Reversal of stock compensation expense | $ 0 | $ 901,801 | $ 149,735 | $ 1,785,125 | |||
Five Year From The Grant Date In Respect Of Equity Holders Holding Ten Percent Or More Of The Capital Stock Of The Company [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Share based compensation by share based payment arrangement options period of expiry | 10 years | ||||||
Three Months From The Date Of Termnation Of Employment With The Company [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Share based compensation by share based payment arrangement options period of expiry | 3 months | ||||||
One Year From The Date Of Termination From The Company Due To Death [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Share based compensation by share based payment arrangement options period of expiry | 1 year | ||||||
2020 Omnibus Incentive Plan [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Common stock, shares authorized | 1,124,160 | 1,124,160 | |||||
2020 Omnibus Incentive Plan [Member] | Market Based Restricted Stock Unit Agreement [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Share based compensation arrangement by share based payment vesting period | 30 days | ||||||
2020 Omnibus Incentive Plan [Member] | Performance Based Restricted Stock Unit Agreement [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Divindend rate | 0% | 0% | |||||
Employee Stock Purchase Plan [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Dividend yield | 0% | ||||||
Maximum number of shares acquire per participants | 650 | ||||||
Purchase price of common stock, percent to its market value | 85% |
Earnings per Share - Summary of
Earnings per Share - Summary of Earnings Per Share (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||||
Net loss | $ (3,507,246) | $ (4,143,910) | $ (4,904,520) | $ (14,139,402) | $ (7,651,156) | $ (19,043,922) |
Weighted average shares outstanding- basic | 9,284,585 | 9,132,632 | 9,249,738 | 9,114,527 | ||
Weighted average shares outstanding- diluted | 9,284,585 | 9,132,632 | 9,249,738 | 9,114,527 | ||
Basic and diluted: | ||||||
Net loss per share (basic) | $ (0.38) | $ (0.54) | $ (0.83) | $ (2.09) | ||
Net loss per share (diluted) | $ (0.38) | $ (0.54) | $ (0.83) | $ (2.09) | ||
Common stock options, restricted stock awards, and market-based stock awards excluded due to anti-dilutive effect | 2,310,573 | 1,453,582 | 2,310,573 | 1,453,582 |
Concentrations - Additional Inf
Concentrations - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) Customer Suppliers | Jun. 30, 2022 USD ($) Suppliers Customer | Jun. 30, 2023 USD ($) Customer Suppliers Vendors | Jun. 30, 2022 USD ($) Customer Suppliers | Dec. 31, 2022 Vendors Customer | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Three Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 78% | ||||
Number of customers | 3 | ||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Two Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 68% | ||||
Number of customers | 2 | ||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Three Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 49% | 45% | |||
Number of customers | 3 | 3 | |||
Receivables from customer | $ | $ 1,608,326 | $ 556,117 | $ 1,608,326 | $ 556,117 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 21% | ||||
Number of customers | 2 | ||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | One Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 12% | ||||
Number of customers | 1 | ||||
Vendors Concentration Risk [Member] | Liabilities, Total [Member] | Accounts Payable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 13% | 41% | |||
Number of vendors | Vendors | 1 | 2 | |||
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | Indonesia [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 11% | 51% | 12% | 64% | |
Supplier Concentration Risk [Member] | Cost of Goods and Service Benchmark [Member] | Products [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 33% | 51% | 26% | 64% | |
Number of supplier | Suppliers | 3 | 3 | 2 | 2 |
Related Party - Additional Info
Related Party - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Advertising expenses | $ 1,155,789 | $ 1,567,465 | $ 2,316,997 | $ 3,359,202 | |
Accounts payable | 2,282,983 | 2,282,983 | $ 1,080,267 | ||
Gabby Reece [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advertising expenses | 125,198 | $ 22,750 | 264,525 | $ 33,250 | |
Accounts payable | $ 34,847 | $ 34,847 | $ 16,500 | ||
Laird Hamilton and Gabrielle Riece [Member] | License and Preservation Amendment Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Additional term of the license agreement | 10 years | ||||
Laird Hamilton and Gabrielle Riece [Member] | License and Preservation Amendment Agreement [Member] | Maximum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Additional term of the license agreement | 100 years |
Revenue Recognition - Summary O
Revenue Recognition - Summary Of Disaggregation Of Revenue Based On Products Sold (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Sales, net | $ 7,724,091 | $ 8,674,006 | $ 15,837,029 | $ 18,014,019 |
Coffee Creamers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 4,636,807 | 4,694,975 | 9,754,167 | 10,149,382 |
Hydration and Beverage Enhancing Supplements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 998,309 | 1,296,779 | 1,669,159 | 2,754,210 |
Harvest Snacks And Other Food Items [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 1,845,016 | 1,713,441 | 3,598,042 | 3,400,232 |
Coffee Tea and Hot Chocolate Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 1,973,437 | 1,568,142 | 3,942,732 | 3,384,327 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 124,952 | 419,390 | 154,681 | 657,713 |
Gross Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 9,578,521 | 9,692,727 | 19,118,781 | 20,345,864 |
Shipping income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | 259,843 | 291,410 | 563,069 | 539,602 |
Returns and discount [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales, net | $ (2,114,273) | $ (1,310,131) | $ (3,844,821) | $ (2,871,447) |
Product Concentration Risk [Member] | Revenue, Product and Service Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 100% | 100% | 100% | 100% |
Product Concentration Risk [Member] | Revenue, Product and Service Benchmark [Member] | Coffee Creamers [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 60% | 54% | 62% | 56% |
Product Concentration Risk [Member] | Revenue, Product and Service Benchmark [Member] | Hydration and Beverage Enhancing Supplements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 13% | 15% | 11% | 15% |
Product Concentration Risk [Member] | Revenue, Product and Service Benchmark [Member] | Harvest Snacks And Other Food Items [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 24% | 20% | 23% | 19% |
Product Concentration Risk [Member] | Revenue, Product and Service Benchmark [Member] | Coffee Tea and Hot Chocolate Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 26% | 18% | 25% | 19% |
Product Concentration Risk [Member] | Revenue, Product and Service Benchmark [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 2% | 5% | 1% | 4% |
Product Concentration Risk [Member] | Revenue, Product and Service Benchmark [Member] | Gross Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 125% | 112% | 122% | 113% |
Product Concentration Risk [Member] | Revenue, Product and Service Benchmark [Member] | Shipping income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 2% | 3% | 2% | 3% |
Product Concentration Risk [Member] | Revenue, Product and Service Benchmark [Member] | Returns and discount [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | (27.00%) | (15.00%) | (24.00%) | (16.00%) |
Revenue Recognition - Summary_2
Revenue Recognition - Summary Of Disaggregation Of Revenue Based On Channels (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue Based On Channels [Line Items] | ||||
Sales, net | $ 7,724,091 | $ 8,674,006 | $ 15,837,029 | $ 18,014,019 |
Online [Member] | ||||
Disaggregation Of Revenue Based On Channels [Line Items] | ||||
Sales, net | 4,139,373 | 5,178,819 | 8,567,054 | 10,602,770 |
Wholesale [Member] | ||||
Disaggregation Of Revenue Based On Channels [Line Items] | ||||
Sales, net | $ 3,584,718 | $ 3,495,187 | $ 7,269,975 | $ 7,411,249 |
Channels Concentration Risk [Member] | Revenue, Segment Benchmark [Member] | ||||
Disaggregation Of Revenue Based On Channels [Line Items] | ||||
Concentration risk, percentage | 100% | 100% | 100% | 100% |
Channels Concentration Risk [Member] | Revenue, Segment Benchmark [Member] | Online [Member] | ||||
Disaggregation Of Revenue Based On Channels [Line Items] | ||||
Concentration risk, percentage | 54% | 60% | 54% | 59% |
Channels Concentration Risk [Member] | Revenue, Segment Benchmark [Member] | Wholesale [Member] | ||||
Disaggregation Of Revenue Based On Channels [Line Items] | ||||
Concentration risk, percentage | 46% | 40% | 46% | 41% |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of receivables from contracts with customers, contract assets, and contract liabilities (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Revenue Recognition [Abstract] | |||
Accounts receivable, net | $ 1,814,461 | $ 1,494,469 | $ 1,268,718 |
Contract assets | 101,220 | 57,249 | 8,316 |
Contract liabilities | $ (348,121) | $ (443,227) | $ (200,914) |